A greater availability of resources destined for credits promoted an increase of 10.73% during the month of January, which significantly boosted the local economy during the mentioned period, according to the report of Financial Indicators of the Central Bank of Paraguay (BCP).
The diversification of credits in the first month of the year is explained by the expansion of loans in national currency (MN), by 9.69% year-on-year, while loans in foreign currency (ME) increased by 10.66% in the same period.
From the BCP they point out that total private deposits have exhibited a year-on-year growth of 9.27%. Deposits in MN have grown by 5.13%, while deposits in FC have expanded by 12.14%.
The weighted average of active interest rates in MN has been located at 13.64%, increasing in monthly and interannual terms. For its part, the weighted average of deposit rates in LC has reached a level of 3.50%, decreasing slightly in monthly terms and increasing in interannual terms.
Local currency lending rates on commercial and development loans have increased in monthly and year-on-year terms. Rates on consumer, home and credit card loans have increased on a monthly basis, but decreased on a year-over-year basis. On the other hand, overdraft rates have decreased both monthly and year over year.
Regarding rates in ME, the weighted average of lending and deposit interest rates in the banking system have increased monthly, but have decreased in year-on-year terms. As of January 2022, the average lending rate was 5.67% and the passive rate was 1.41%.
FC lending rates on commercial and development loans have risen monthly, but have fallen within a year. The rate on home loans has decreased on a monthly basis, but has increased on a year-over-year basis. On the other hand, the rates of consumer loans and overdrafts have decreased both monthly and year-on-year.
The Monetary Policy Committee (CPM) of the Central Bank of Paraguay (BCP), at its meeting on February 22, 2022, unanimously decided to increase the monetary policy rate by 25 basis points, standing at 5.75%.
The Federal Reserve of the United States (FED), in its meeting on January 25-26, decided to keep the interest rate in the range of 0-0.25%. In this sense, they affirm that inflation is considerably above the 2% objective, and the labor market is in excellent condition, the FED considers an increase in the interest rate for federal funds to be imminent.
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