Central Banks

Paraguay Slows Easing Pace With Quarter-Point Interest Rate Cut

  • Central bank cuts benchmark interest rate to 6.5% from 6.75%
  • Policymakers say key rate is now approaching neutral range
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Paraguay’s central bank cut its benchmark interest rate by a quarter of a percentage point to 6.5%, slowing its easing pace while saying that borrowing costs are approaching a neutral range.

Friday’s decision to lower the key rate by 25 basis points followed two consecutive half-point cuts in November and December. The move was widely expected by analysts surveyed by the central bank.