Monetary Policy Rate Decreases: Have They Worked?For the Central Bank of Costa Rica, the constant reductions in the Monetary Policy Rate that have taken place since March 2019 have been gradually and incompletely transferred to the interest rates of the financial system.Tuesday, March 3, 2020
At the end of January this year was the last reduction of the monetary policy rate, in this case from 2.75% to 2.25%. For this occasion, the Central Bank argued that the drop was made because by 2020 and 2021 inflation is expected to remain within the target range. Do you need detailed information on the financial sector? Contact Us.Need assistance? Contact us
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Costa Rica: Monetary Policy Rate Drops to 2.25%January 2020 Arguing that in 2020 and 2021 inflation is expected to remain within the target range, although below its average value of 3%, the Central Bank reduced the monetary policy rate from 2.75% to 2.25%. Expectation for Changes in Monetary PolicySeptember 2019 Although the downward adjustments made months ago in the bank reserve and monetary policy rate do not yet appear to have had an effect on the loan portfolio in Costa Rica, banks expect credit to be reactivated soon. Pressure on Interest RatesNovember 2018 Because of the adjustments made by the Central Bank to interest rates in recent days, financial institutions in Costa Rica will be forced to raise interest rates on savings in local currency. Costa Rica: Base Rate Drops to 6.9%May 2015 The main reference interest rate for investments and loans continues its downward trend seen in recent weeks, now standing at 6.90%
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