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 rise was unexpected since a downward trend was anticipated in the level of interest rates in the domestic banking system. However, on other occasions, Colon-specific needs have led to temporary increases in weekly calculations of the TBP.

More on this topic

Base Rate Rises to 11% in Costa Rica

October 2012

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.

Base Rate in Costa Rica Drops to 10%

September 2012

With a decline of half a percentage point, the rate will stand at 10% starting the September 6.

The average drop on deposit rates of commercial banks (from 10.64% to 10.03%) drove down the passive base rate (PBR).

"The PBR is a weighted average calculated weekly by the Central Bank of Costa Rica on the uptake rates of the entities in the country’s financial system for periods that are between 150 and 210 days.

Costa Rica: Basic Rate at Highest this Year

November 2011

With a half-percentage point increase, the basic passive rate (TBP in Spanish) has reached 8.25%, the highest value yet recorded in 2011.

The increase in the TBP to 8.25% occurs after it remained for nearly the entire month of October at 8% and last week was only 7.75%.

Basic Rate Rises to 7.25% in Costa Rica

October 2010

After spending last week at 6.75%, the passive basic rate will be set tomorrow at 7.25%.

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.”