Paraguay PRY

Executive summary

Paraguay’s central bank sits at an adequate composite score of 66, yet its credibility gap remains high at 100, signaling a disconnect between policy signals and market expectations. Inflation has dipped slightly below the target band (3.5% versus 4.0%), suggesting a modest easing pressure but still within tolerable limits. No policy rate or communication data is currently available, leaving uncertainty around tightening decisions. Geopolitical tension is moderate‑high at 47.3, amplified by recent headlines on armed conflict references and criminal activity that could erode confidence in the banking sector. Investors should monitor forthcoming policy announcements, inflation releases, and any uptick in security concerns for potential portfolio adjustments.

Peer context

Rank 3/20 in Latin America & Caribbean · 90th percentile

Region avg 56.3 · best 69.6 · worst 25.5