2023-10-24 00:48:05
The limit for loan rates in local currency in the financial system will have a rebound next month and will reach 30.16% next November, almost similar to the current one this month of 30.17%, reported the Central Bank of Paraguay (BCP).
By ABC Color
October 23, 2023 – 19:08
The Superintendency of Banks (SIB) announced that next November the maximum limits, from which the active interest rate is considered usurious, will be 30.16% for operations in local currency. The interest rate limit established for next month remains almost at similar values with respect to the one in force for the current month of October, of 30.17% for loans in guaraníes
It is worth mentioning that the average active lending rate in the financial system is well below these limits, at around 15%.
Read More: Loan Interest Rate Limit
This stability in the interest rate limit, which maintains the margin of the intermediaries, occurs precisely as an effect of the Monetary Policy Rate (MPR) of the Central Bank of Paraguay (BCP). Although the parent bank reduced its MPR for two consecutive months, it is still high at 8%. Agents in the sector precisely expect that the parent bank will continue with the plan to make its rates more flexible to achieve cheaper loans in the short term.
In this regard, the Monetary Policy Committee meets today to analyze the local and international scenario that may affect the expectation of inflation and the economy, in order to continue with its plan to make the interest rate more flexible.
Read More: Inflation: BCP reduces monetary policy rate to 8%
The caps for rates considered usurious in the regulated system have been falling steadily since 2015 and are still at low levels, according to official data. However, the average active rate charged in the system is well below the allowed ceiling, around 15.27%, according to the latest financial indicators report.
#Rate #limit #credits #Economy