Paraguay Holds Key Rate at 5.5%, Signals Neutral Stance

Paraguay’s central bank kept its benchmark interest rate steady at 5.5%, citing below-target inflation and an economy growing at a slower rate than last year.

The decision on Friday was widely expected by analysts who forecast a pause following two quarter-point cuts since January. The central bank, which targets 3.5% inflation with a tolerance of plus or minus two percentage points, reiterated that its monetary policy stance remains neutral.