Paraguay central bank says raises key rate 50 bps to 6pc

ASUNCION: Paraguay's central bank on Wednesday raised its benchmark interest rate 50 basis points to 6 percent, a move it said was aimed at controlling inflationary expectations.

The bank's rate-setting committee issued a statement saying its decision to tighten its monetary policy was unanimous.

"There are domestic inflationary pressures that will be reflected in price dynamics in 2014," it said.

Central bank chief Carlos Fernandez Valdovinos said he expects Paraguay's inflation rate to come in at 5 percent next year, following 4.6 percent in full-year 2013.

The economy of the world's No. 4 soybean exporter is expected to grow 4.8 percent next year following a 13.6 percent expansion in 2013, the chief monetary policymaker said.