LatinNews Daily - 23 February 2026

*Paraguay’s central bank (BCP) has cut its benchmark interest rate by 25 basis points to 5.50%. This follows a previous rate cut of 25 basis points in January, which was the first reduction in the interest rate since March 2024. In a statement, the BCP noted that monthly inflation in January was 0.6%, bringing the annual rate to 2.7% – below the target rate of 3.5%. The bank expects annual inflation “to remain at low levels for most of 2026, before rising to 3.5% towards the end of the year”. The BCP said that the economy is performing well, with GDP growth estimated at 6.0% in 2025 but expected to slow to 4.2% in 2026. Whilst the statement did note a global rise in oil prices due to geopolitical tensions, it said that this trend should be moderated by strong global oil supply. Regarding the agricultural sector, the BCP said that soy prices have climbed higher amid expectations of greater demand from China.