Paraguay Central Bank Surprises With Quarter-Point Rate Cut

Paraguay’s central bank unexpectedly cut the benchmark interest rate a quarter point to 5.75%, citing anchored inflation expectations and slowing consumer prices.

The central bank, which targets 3.5% inflation with a tolerance of plus or minus two percentage points, had kept its key rate unchanged at 6% since April 2024. Analysts surveyed earlier this month by the monetary authority expected policymakers to remain on hold.