For the past four months, the rate has hovered between 8% and 8.5%. Since the start of the year, we have maintained our forecast that it would remain between 8% and 10% for the first six months of the year.

Interest rates in domestic currency could move up during the rest of the year, fueled by two events: economic recovery in the country, which would cause increased demand for liquidity, and the Treasury requiring more financing. If the Government decides to finance its activities domestically, competing for resources in the financial market, it would put upwards pressure on interest rates; if it is conducted eternally, it would not pressure interest rates, but could move the exchange rate further down, as more dollars would be available in the market.

More on this topic

Basic Rate in Costa Rica up to 7.75%

January 2011

With an increase of a quarter of a percentage point, the Basic Passive Rate is at 7.75%.

The basic passive rate is calculated each Wednesday by the Central Bank of Costa Rica.

"According to measurements by the Center for Research in Economics at the University of Costa Rica, this year the TBP will hover between 8% and 9%," stated Leticia Vindas in her article on El Financiero.

Costa Rica: Basic Rate Up to 8%

January 2011

The basic passive rate recorded its first increase of the year to stand at 8%.

This increase puts the rate at the level reported in early January.

"The basic passive rate is a weighted average interest charged by savings banks, the Central Bank and the Ministry of Finance for terms between five and seven months. The Central Bank calculates the rate every Wednesday," wrote Nacion.com.

Basic Rate Drops to 8% in Costa Rica

March 2010

In the last three months the Basic Passive rate has hovered between 8% and 8.25%.

The Central Bank of Costa Rica updates this economic indicator every Wednesday.

“Pablo Villalobos, head of financial statistics at the Central Bank, commented that so far 2010, short term rates (less than a year), have remained relatively stable.

Basic Rate Climbs To 8.25% in Costa Rica

March 2010

The Basic Passive Rate increased a quarter percentage point and stands now at 8.25%.

Since the end of 2009, the rate has fluctuated between 8% and 8.25%.

The Basic Passive Rate is a weighted average of interest rates paid by banks, the Central Bank and the Treasury, for securities maturing between 150 and 210 days", explained El Financiero.