Paraguayan policy-makers weigh inflation against drought and pandemic
The Central Bank of Paraguay continued its tightening cycle at a slower pace on January 21, as the economy suffers the impact of drought and the resurgent Covid-19 pandemic.
The 25 basis point hike ordered by the monetary policy committee was notably smaller than the preceding months, when the central bank implemented three 125bp hikes in a row.
After their January meeting, policy-makers noted that high inflation needs to be balanced against a “weakening” domestic economic outlook. The MPC
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