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).
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
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 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%.
The measure will be in effect for nine days in Costa Rica from February 23rd , influenced by a rise in interest rates at the central bank and commercial banks.
At 9%, the indicator is once again at its highest of the year, a level which has not been reached since the end of 2009, reported Nacion.com.
The basic passive rate of 9% represents an increase of 0.25 points, driven by increases in interest rates at the Central Bank, commercial banks (public and private) and other financial institutions.
The basic passive rate has gone down and stands at 8.75% from Thursday 16th until next Wednesday 22nd February.
"The decline in the indicator is driven by a decline in average rates paid by public commercial banks, it went from 8.90% to 8.73%. These entities are those with the most weight relative to the calculation made by the Central Bank of Costa Rica", reports Elfinancierocr.com
Increased demand for credit, both consumer and investment credit, coupled with the government’s appetite for money, are driving up interest rates, despite very low inflation.
A statement by ALDESA headed “Complicated Interest Rate Scenario” states that:
“The latest auctions by the Ministry of Finance, together with a growing lending activity, both in dollars and colones, are creating a scenario of rising interest rates, an incidence already noted on the stock market.
From today the basic passive rate (TBP in Spanish) rose half a percentage point to settle at 8.5%, a level not seen since May 2010.
"The increase was caused by higher deposit rates at state-owned banks, which are the entities that carry the most weight in the definition of the TBP.
According to information from the Central Bank of Costa Rica (BCCR), the banks' average rates rose from 7.83% to 8.39% in a matter of a week", reported Elfinancierocr.com
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