In Costa Rica, a law initiative under discussion seeks to set caps on interest rates on loans, a measure that could lead to a reduction in the offer of credit for debtors classified as higher risk.
As part of a bill being discussed in the Legislative Assembly, the heads of the Central Bank of Costa Rica (BCCR) and the General Superintendence of Financial Entities (Sugef) were asked to give their views on the content of the proposal.
Because savers in Costa Rica have moved their resources to longer terms, to avoid an increase in income tax, the Basic Passive Rate rose to 6.65%, a level not recorded since August 2015.
According to data published by the Central Bank of Costa Rica on Wednesday afternoon, July 3, the Basic Passive Rate (BPR) reports levels not reached since August 26, 2015, and will remain at 6.65% until next July 10.
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.
Arguing that forecasts suggest that inflation in 2019 could be above the upper limit of the target range, on November 1st the Central Bank of Costa Rica (BCCR) decided to raise the monetary policy rate from 5% to 5.25%.
The passive base rate rose from 4.50% to 4.60%, while the effective rate in dollars rose from 1.93% to 2.11%.
BancoCentral deCosta Ricareleased news on Wednesday afternoon on November 23 that the passive base rate rose by 0.10%, meaning that the rate will remain at 4.60% until Wednesday November 30.
The passive base rate in colones fell from 4.80% to a record low of 4.70%, while the effective tax rate in dollars dropped from 1.98% to 1.91%.
The Central Bank of Costa Rica (BCCR) released late on Wednesday September 21, news that the passive base rate will stand at 4.70%, until Wednesday September 28. This is its lowest value so far this year.
The Central Bank of Costa Rica has started publishing the effective rate in dollars, which is a weighted average of the gross interest rates given for term deposits.
Calculation of the Effective Rate in Dollars
Week of 05/05/2016 to 11/05/2016
Public banks: Relative Weight: 0.4338 - Average Rate: 1.6084
Private Banks: Relative Weight: 0,5662- Average rate: 2.1677
For the first time in a year and five months, the benchmark rate for loans and investments in the country has dipped to less than 7%.
The Central Bank of Costa Rica reported that the passive base rate, an indicator of the average uptake rates given by financial institutions on periods of between 150 and 210 days will be located at 7.05% at least until Wednesday 27 August.
The reference rate for loans and investments in the country will stand at 6.85% until at least June 4.
The Central Bank of Costa Rica reported that the passive base rate, an indicator of the average rates given by financial institutions on savings for periods of between 150 to 210 days, has gone up up from 6.75% to 6.85% and will stay at this level at least until June 4.
The main reference for loans and investments in the country rose by 0.10%, after staying at 6.70% for four consecutive weeks.
The Central Bank of Costa Rica reported that the passive base rate, an indicator of the average uptake rates given by financial institutions on savings with maturities of 150 to 210 days, will stand at 6.80% at least until 14 May.
The benchmark interest rate for loans and investments in the country has moved up to 6.5% and will stay at that level until at least the 19th of March.
The Central Bank of Costa Rica announced that as of Thursday, March 13th and until at least the 19th of the month, the passive base rate will be located at 6.50%.
The benchmark interest rate for loans and investments will rise 0.05%, as last week it stood at 6.45%, the lowest level since July 2008.
The main benchmark rate for loans will remain at that level until at least February 26th.
The Central Bank of Costa Rica has announced that for the second consecutive week and at least until February 26th, the passive base rate will remain at 6.50%.
That level "was the lowest rate recorded during 2013 and was reached for the first time on September 5 of that year."