Economics

South America’s Top Rate Cutter Is in No Rush to Raise It

Start of tightening depends on recovery: central bank chief
Paraguay currency outperforms peers on 2021 growth outlook

Jose Cantero, chairman of the Central Bank of Paraguay, comments on the contribution of neighboring countries to Paraguay’s recovery in 2021.(Source: Bloomberg)

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By Ken Parks

March 5, 2021 at 11:29 AM UTC

Updated on

March 5, 2021 at 2:33 PM UTC

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Paraguay will refrain from lifting borrowing costs from record lows until policy makers are sure the recovery has taken hold and even then the path to neutral rates “will be a gradual process,” according to its central bank chief.

“Given that inflation expectations are anchored, that gives us sufficient room to continue supporting the economy,” Jose Cantero said in a video interview on Thursday.