Itaú BBA - Macro Scenario - Paraguay: Cutting the interest rate

Macro Latam

< Volver

Macro Scenario - Paraguay: Cutting the interest rate

abril 17, 2019

Low inflation allowed monetary-policy easing

For the full version with all charts and tables, please open the attached pdf file
 

• The central bank cut the monetary-policy rate by 25 bps for the second consecutive month in March due to the activity slowdown and low inflation. We believe that the monetary-policy easing cycle has ended, and see the monetary-policy rate at 4.75% at the end of 2019.

• GDP growth slowed in 2018. The negative statistical carryover this year, the drought, and the lower expected growth in Argentina and Brazil lead us to introduce downside risks to our YE19 growth forecast of 3.5%.

 

Juan Carlos Barboza
Diego Ciongo

 

For the full version with all charts and tables, please open the attached pdf file



< Volver