Costa Rica: Monetary Policy Rate Goes Up Again

For the second time this month and arguing short-term inflationary pressures, the central bank has decided to raise the monetary policy rate from 2.25% to 2.50%.

Thursday, April 27, 2017

This increase in the monetary policy rate follows the one announced on April 6, when the Central Bank raised it to 2.25%, before then it had remained at 1.75% since January 2016.

From a statement issued by the Central Bank of Costa Rica:

Increase in monetary policy rate and the interest rate for one day deposits
 
The Board of the Central Bank of Costa Rica set out in Article 12 of the minutes of the 5768-2017 session of April 26, 2017, the following: 

1.  Setting the Monetary Policy Rate at 2.50% per annum, as of April 27, 2017.
 
2.  Setting the gross interest rate for one day deposits  (DON by their initials in Spanish) at 1.14% per annum, as of April 27, 2017.

The decision of the collegiate body was based on the following considerations: 

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.


Read full article (in spanish). 

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