Paraguay Cuts Interest Rate 5.75%
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The Central Bank of Paraguay has reduced its policy interest rate to 5.75%. This decision was influenced by global economic conditions, including IMF forecasts of 3.3% global growth for 2025 and 2026, and a 4.4% annualized GDP growth in the US for Q3 2025. Domestic inflation eased to -0.3% in December, with annual inflation at 3.1%. The bank remains committed to maintaining price stability amid mixed agricultural prices and a 4.0% year-on-year growth in the IMAEP as of November.
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