Paraguay’s policymakers are considering potential interest rate reductions for this year amid declining consumer prices and reduced inflationary pressures. The annual inflation fell below the central bank’s 4% target in July. As the upcoming administration looks forward to the IMF’s anticipated 4.5% economic growth for 2023, a challenge for Pena, the central bank governor, will be to align his electoral promises with fiscal policies aimed at reducing the deficit to 1.5% of the GDP by 2026.