Itaú BBA - Macro Scenario – Paraguay: No changes in monetary policy

Macro Latam

< Voltar

Macro Scenario – Paraguay: No changes in monetary policy

Março 10, 2020

Price stability would give the BCP room to maintain the current monetary policy rate.


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

 

• Low inflation would allow the central bank (BCP) to keep the interest rate unchanged for the remainder of the year despite the expected expansion of aggregate demand. We expect a consumer price increase of 3.5% in 2020, while the monetary policy rate would remain at 4% (4.25% in our previous scenario).

• Activity clearly recovered in 4Q19, according to the BCP's leading activity indicator. We expect a 3.5% GDP expansion this year, driven by the normalization of the soybean crop after the drought.



Juan Carlos Barboza
Diego Ciongo


 


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

 



< Voltar