After remaining between 9.5% and 10% over the past 45 days, the Passive Base Rate has resumed its upward path, reaching its highest level this year.
With this increase the rate reaches a level not attained since October 2009.
The passive base rate is calculated by the Central Bank and is the weighted average interest rate for savings in colones for periods ranging from 150 days (5 months) and 210 days (7 months).
The Passive Base Rate has increased by 50 base points and now stands at a level of 10%.
The indicator has again hit the highest value reached in 2012, having been at the same value between 10 and 22 May 2012 and between May 31 and June 13, 2012.
The passive base rate is calculated by the Central Bank and is a weighted average interest rates of savings in colones for periods ranging from 150 days (5 months) and 210 days (7 months).
The Central Bank of Costa Rica has reduced the Passive Base Rate (PBR) by 25 basis points, standing now at 9.50%.
This value is the same as that reported on June 21.
"In the calculation published today and which will come into force on July 5, public commercial banks lowered their interest rates from 9.7% to 9.58% and being the most important in the weighting the PBR was lowered", reports Elfinancierocr.com
The passive base rate has increased by 25 base points, reaching a level of 9.75%.
The rise reflects an increase in deposit rates of commercial public banks.
The average deposit rates in public commercial banks rose from 9.5% to 9.7%.
"The indicator is calculated by the Central Bank of Costa Rica and published every Wednesday.
Banks tend to link the level of interest charged on loans to the passive base rate, so that any adjustment affects credit quotas", published Elfinancierocr.com
For the second time the passive base rate has dropped from 9.75% to 9.50% as of today June 21.
Last week it went down to 9.75% from 10%.
"This weeks reduction has been influenced by on the average rate of the Central Bank and public banks.
The average rate of state banks and Banco Popular went from 9.97% on 7th June, to 9.81% on the 14th, and to 9.51% this week", reported Patricia Leiton on the website of La Nacion.
The Central Bank of Costa Rica has reduced the Passive Base Rate (PBR) again to 9.75%.
From Thursday 14 June, The Passive Base Rate (PBR) will change from 10% to 9.75%, informed the Central Bank of Costa Rica.
"The decline is because of a decrease in interest rates in public banks, going from 9.97% to 9.81% on average", reported Elfinancierocr.com. The BPR rose to 10% on 31 May, after having been 9.75% in early May.
The measure by the Central Bank of Costa Rica applies from Thursday, barely a week after the index had fallen to 9.75%.
After only one week of a lower rate (9.75%), the BPR again hit the 10% mark where it had been since the first weeks of May, the highest amount this year.
"As usual, it was the public commercial banks which led to the increase in the indicator, as its average funding increased from 9.87% to 9.94%," reported Elfinancierocr.com.
Following a slight reduction in interest rates in the banking system, the central bank has adjusted the value of the Passive Base Rate from 10% to 9.75%.
From a statement by Aldesa:
The base rate went down from 10%, the level it has been at for the last two weeks, to settle at 9.75%.
During the past week both public and private banks were paying somewhat lower yields for their deposits in colons in terms from 150 to 210 days.
If the government continues to absorb money in the local market, rates will continue to rise which will abruptly restrict credit, and slow economic growth.
Aldesa's blog:
What made the passive base rate rise to 10% ?
The uptake by state banks has caused the base borrowing rate to rise to 10%, while interest rates for savings between 180 and 210 days between private banks have fallen, showing that they have less need for colones being much more active in generating dollar loans.
Continuing the upward trend in recent months, the Passive Basic Rate (PBR) has reached values not seen since late 2009.
From Thursday 3rd May the PBR to will go up to 9.75%, reaching a level similar to the end of 2009.
"From the first week of January until the 1st of May, the simple average of the PBR was 9.04%, if you compare that to the corresponding period of 2011 the average was 7.42%", reported Elfinancierocr.com.
The BCR has imposed the highest rate since 2009, making the measure effective from Thursday 19th April.
The basic passive rate (BPR) has remained at 9.25%, for 7 consecutive weeks, which is the longest period without changes in the last four years.
"As usual, the change occurred because of the momentum of public commercial banks, whose average rates rose from 9.29% to 9.56% and took with them the BRR which carries the most weight in the calculation," reported Elfinancierocr.com.
This is the fifth time in which the central bank has varied the rates paid to savings deposited electronically using Central Directo so far in 2012.
The rate paid in terms of 270 to 359 days increased from 7.55% to 8.05%, for terms of 360 to 1079 days the rate went from 8.05% to 8.55%, from 1080 to1799 days it changed from 8.75% to 9.75% and thereafter, from 9.1% to 10.1%.
The Basic Passive Rate has increased by 25 base points and stands at 9.25% as of Thursday 1st March.
This percentage of 9.25% is the highest since late last year, in 2011, when it started on its upward trend.
"The last time that the basic passive rate reached that level was in December 2009 when the rate went down after having been at values of up to 12.25%.