Despite the increase, the rate has not recovered from the highest level of the year, reached last May when it hit 8.5%.
Sergio Morales explains in his article at Elfinancierocr.com "The calculation of the TBP is a weighted average interest rate of gross uptake in Colones, negotiated by financial brokers, and by Central Bank and the Ministry of Finance. It includes yields from instruments ranging from five to seven months.”
The new rate reflects an increase in public banks deposits, which rose from 6.53% to 8.13%.
One factor that could explain the higher rates paid by public banks for deposits in Colones are the unusual Dollar purchases made by the public sector to Monex last week. These institutions bought more than $ 100 million in just 5 days, which implies a demand for Colones in order to pay for those Dollars, especially at the end of the month.
The basic passive rate will be located from 7 March at 7.25%, the lowest in the past 18 months, after having reached 11% earlier in October.
Gabriel Alpizar, financial risk manager at the Bank of Costa Rica, said that "the main reason for the fall of the base rate lies in the fact that there is an abundant liquidity in colones which the central bank has made in recent months, adjusting this macroprice which is fundamental to our economy", noted an article in Crhoy.com.
The base rate (BPR) has gone up half a percentage point to stand at 11%, the highest value so far this year.
"This week, the calculation of the BPR was influenced by increases in the average Treasury rates, which increased from 9.96% to 10.01%, and public banks rising from 10.87% to 11 , 05%, according to the Central Bank's website.
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