Paraguay raises rates as start of ‘gradual normalisation’
Country is latest in Latin America to tighten policy, alongside Brazil, Uruguay and Peru
The Central Bank of Paraguay’s monetary policy committee raised its policy rate on August 23, saying the move started a gradual normalisation of rates.
The MPC raised the benchmark rate by 25 basis points to 1%, it announced, in its first change since June 2020. It had held the rate at 0.75% since June 2020, when it made a 50 basis point cut. The BCP set a 4% inflation target, with a tolerance band of plus or minus 2%, in 2017.
The move means Paraguay follows several other Latin American
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