(Bloomberg) -- Paraguay’s central bank delivered its eighth consecutive interest rate cut and signaled it can keep easing monetary policy as inflation slows. 

The bank on Thursday lowered its benchmark rate by a quarter point to 6%, a move widely anticipated by economists who forecast another reduction of the same magnitude in April. Since August, policymakers have cut borrowing costs by 250 basis points. 

The central bank said in a post-meeting statement that it will monitor domestic and international events to ensure inflation converges with the 4% target.

“The behavior of domestic inflation and expectations make it possible to continue gradually advancing toward a normalization of monetary policy,” policymakers wrote.

Latin American central banks from Chile to Uruguay have lowered interest rates in the last year thanks to the broad slowdown in inflation. Mexico kicked off its easing campaign Thursday, cutting its key rate by 25 basis points to 11%.

Read more: Mexico Cuts Key Interest Rate for First Time Since 2021

Paraguay’s consumer prices slowed to 2.9% last month from 3.4% in January, led by falling fuel prices and a moderation in food inflation.

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