ASUNCION, Jan 20 (Reuters) - Paraguay’s central bank said it lifted its key interest rate by 25 basis points to 6.0 percent on Wednesday in a bid to contain inflation.
The policy committee issued a statement saying the rate increase was needed to “guarantee that inflation converges to the target of 4.5 percent per year.”
Inflation was 3.1 percent in 2015, but some consumer prices have risen due to a depreciation of the local currency versus the U.S. dollar.
The bank estimates Paraguay’s gross domestic product grew 3.0 percent last year. It sees a 3.2 percent expansion in 2016, a forecast that private economists call ambitious considering the economic slowdown in the region.
Reporting by Daniela Desantis; Editing by Cynthia Osterman