The Central Bank of Costa Rica has announced that starting from July 18th the base rate will increase from 6.60% to 6.65%.
Crhoy reports: "The PBR will rise after remaining for four consecutive weeks at 6.60%, the lowest level since the application of the new calculation method, adopted in December 2012, and one of the lowest in the last four years ".
The Central Bank of Costa Rica reported that from 23 and until at least until May 30, the BPR will remain at 6.70%.
"The passive base rate (PBR) shows a trend of stability in the short term, particularly from the end of March until the 29th of May, when the most recent calculation of this indicator came into effect ...", reported Elfinancierocr.com.
The Central Bank of Costa Rica reported that from 2 and at least until May 8, the PBR will remain at 6.75%.
"This is one of the lowest recent levels and for the longest duration. The last time it was at 6.75% was in October 2010 and then it was only for a week," noted an article in Elfinancierocr.com.
Economists and stock brokers in Costa Rica are pointing towards a PBR of nearly 7% with inevitable declines and increases, but not very far from this rate.
The business sector is calling on Congress to pass the bill which charges a 30% tax on interest gained by speculative capital.
From a press release issued by the Costa Rican Union of Chambers and Associations in the Private Business Sector (UCCAEP):
The Costa Rican Union of Chambers and Associations of Private Business Sector (UCCAEP) is urging MPs to approve, as soon as possible, the bill which levies a 30% tax on interest earned on speculative capital, which was ruled on in February by the Committee on Financial Affairs.
From today the Passive Base Rate (PBR) rises by a quarter point, going from 10.25% to 10.50%, its highest level for almost three years.
The passive base rate is calculated by the Central Bank and is a weighted average of interest rates of savings in colones for periods ranging from 150 days (5 months) to 210 days (7 months).
The basic passive rate, the main interest rate indicator, has experienced far too much volatility during 2010.
This rate recently dropped 50 basis points (0.5%) to 7.25%, emphasizing its excessive volatility through 2010.
In its most recent report on price increases, the Central Bank of Costa Rica noted that these changes are caused by large transactions executed by some banks with state entities under preferential rates.
Luis Liberman, Costa Rican Vice President-Elect, said the rally in the nation’s currency is “worrisome”.
Costa Rica’s colon has surged 11 percent against the dollar since Dec. 31.
The currency is benefiting from the so-called carry trade, in which investors borrow in nations with low interest rates to buy higher-yielding assets, Liberman said. Costa Rica’s benchmark rate is 5.75 percent, higher than near zero rates in the U.S., 1 percent in the euro-zone and 0.1 percent in Japan.
The recent increase in the value of the Costa Rican colon versus the dollar is worrisome, not only because there are no clear reasons to explain it, but also because it would be hard to contain it without causing greater problems.
In the past weeks, and without apparent reason, the price of the U.S. dollar in Costa Rica dropped considerably.
Starting tomorrow, the Basic Passive Rate, also known as TBP, will be 12.25%.
The Basic Passive rates has registered successive increases in June, the highest of them 0.75 percentage points.
"This reduction however, comes as a surprise, as in the last weeks there were contradictory signals on the direction it could take", noted Edgard Delgado in an article in El Financiero's website.
The Basic Passive Rate now stands at 12.75%, highest value recorded in 2009.
This increase would be partially in response to state banks raising savings rates.
"Since July 1st, the average interest rate for 180 days deposits paid by Banco Nacional, Banco Popular and Banco de Costa Rica raised 180 basis points, reaching 10.13%", states an article in Elfinancierocr.com.
The drop of one fourth percentage point is registered after three weeks in which the indicator was stable at 11.25%.
With this reduction, the rate reaches the same level observed in November of 2008.
Édgar Delgado publishes in Elfinancierocr.com: "The behavior of this indicator is important and not just because it provides a sign of what savers are receiving for their investments..."
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