Costa Rica: Monetary Policy Rate Rises to 5%

Claiming that in the last few months inflation expectations have increased, the Central Bank has raised the monetary policy rate from 4.75% to 5%, from February 1st.

Friday, February 2, 2018

The Central Bank argues that the price of oil has maintained a bullish behavior since July 2017. This situation, with a backlog, is transferring to the local price of fuels, with a potential transmission in the coming months towards other prices.

From a statement issued by the Central Bank:

The Board of Directors of the Central Bank of Costa Rica in article 7 of the minutes of session 5813-2018, held on January 31, 2018, considered that: 

A. Article 2 of the Organic Law of the Central Bank of Costa Rica establishes as priority objectives of this Institution maintaining the internal and external stability of the colón and ensuring its conversion into other currencies. 

B. Title IV, numeral 2, subparagraphs D and E of the Monetary Policy Regulations establishes that, in that order, it corresponds to this Board of Directors to determine the Monetary Policy Rate (TPM) and the overnight interest rate term (DON).  

C. Although, since April 2015, inflation expectations have been contained within the inflation target range, in recent months they have increased with a tendency towards the higher value of that range.  

D. The price of oil maintains the bullish behavior observed since July 2017.  This situation, with la backlog, is transferring to the local price of fuels, with a potential transmission in the coming months towards other prices (second round effects) and towards inflation expectations.  

Read full release (in Spanish).

Do you need information about the financial sector?

Request more information:








this site is protected by reCAPTCHA and Google's privacy policy and terms of service.
Need assistance? Contact us
(506) 4001-6423


More on this topic

Monetary Policy Rate Stays at 5.25%

March 2019

Arguing that inflation expectations are within the target range, in Costa Rica the Central Bank decided to keep the monetary policy rate unchanged.

The last increase in the monetary policy rate was made in early November 2018, when the Central Bank of Costa Rica (BCCR) decided to raise it from 5% to 5.25%, arguing that forecasts suggest that inflation in 2019 could be above the upper limit of the target range.

Monetary Policy Rate Increases to 5.25%

November 2018

Arguing that the predictions suggest that inflation in 2019 could be above the upper limit of the target range, the Central Bank of Costa Rica decided to raise the monetary policy rate from 5% to 5.25%.

From the statement of the Central Bank of Costa Rica:

November 1st, 2018. The Board of Directors of the Central Bank of Costa Rica (BCCR), in the session of October 31st, 2018, decided to increase the monetary policy rate (TPM) by 25 basic points to 5.25% annually. The Board of Directors also agreed to increase the gross interest rate on one-day deposits (DON) by 19 basis points to 3.23% annually. Both increases are in effect from November 1st, 2018.


Costa Rica: Macroeconomic Program 2015-2016  

February 2015

If one thing the current authorities of the Central Bank have stated clear is the concern about the stability of all macroeconomic variables, starting with the exchange rate.  

From analysis given in a blog by Aldesa, Pulso Bursatil:

Since the review of the Macroeconomic Program 2013, where the Central Bank of Costa Rica (BCCR) decided to remove the controversial cap on credit growth, a document of this type has not been presented, with so many changes and announcements of importance to the Costa Rican economy, as presented on Saturday.

Costa Rica: Macroeconomic Program 2014-2015

January 2014

The Central Bank has lowered its inflation forecast to 4% for 2014 and projects increases in interest rates in colones and dollars.

From a Communiqué from the Central Bank of Costa Rica:

The Board of the Central Bank of Costa Rica, in Article 4 of the 5633-2014 session of January 29, 2014 approved the 2014-15 macroeconomic program.

 close (x)

Receive more news about Banking

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


Gluten-free food business for sale

Operating Company dedicated to the manufacture of gluten-free and sugar-free products, OHNE brand.
The OHNE brand has 8 product lines: square bread, sweet...

Stock Indexes

(Apr 6)
Dow Jones
-5.60%
S&P 500
-5.10%
Nasdaq
-5.64%

Commodities

(Jun 1)
Brent Crude Oil
37.820
Coffee "C"
97.000
Gold
1,738
Silver
18.635