Paraguay's central bank left its monetary policy rate at 5.75 percent, repeating its view from August that currently there are no inflationary pressures and a maintenance of the current policy stance is the most appropriate rate to ensure that inflation converges to its 4.5 percent target.
The Central Bank of Paraguay, which has cut its rate by 100 basis points this year, also said that its Open Markets Operations Committee (CEOMA) wanted to highlight the uncertainty associated with the start of policy normalization by the U.S. Federal Reserve.
Although the economic expansion in Paraguay is moderate, the central bank said it was above the average for the region.
Paraguay's economy expanded by an annual 2.2 percent in the second quarter, down from a rate of 4.5 percent in the first quarter.
Paraguay's inflation rate rose to 3.9 percent in August frmo 3.6 percent in July, within the central bank's target of 4.5 percent, plus/minus 2 percentage points.