Basic Rate Increases 25 Points in Costa Rica

©image: Grupo Aldesa

For the past four months, the rate has hovered between 8% and 8.5%. Since the start of the year, we have maintained our forecast that it would remain between 8% and 10% for the first six months of the year.

Interest rates in domestic currency could move up during the rest of the year, fueled by two events: economic recovery in the country, which would cause increased demand for liquidity, and the Treasury requiring more financing. If the Government decides to finance its activities domestically, competing for resources in the financial market, it would put upwards pressure on interest rates; if it is conducted eternally, it would not pressure interest rates, but could move the exchange rate further down, as more dollars would be available in the market.

More on this topic

Basic Rate Climbs To 8.25% in Costa Rica

March 2010

The Basic Passive Rate increased a quarter percentage point and stands now at 8.25%.

Since the end of 2009, the rate has fluctuated between 8% and 8.25%.

The Basic Passive Rate is a weighted average of interest rates paid by banks, the Central Bank and the Treasury, for securities maturing between 150 and 210 days", explained El Financiero.

Basic Rate Drops to 9.25% in Costa Rica

October 2009

The rate is now at the same level of September 2008, after dropping 0.5 percentage points.

In the past five weeks, the Basic Passive Rate has dropped more than 2.5 percentage points.

"Most economists agree that it wouldn't be surprising if the Central Bank drops the monetary policy rate below 9%, putting further downwards pressure on interest rates", reports Prensalibre.cr.

Basic Rate in Costa Rica up to 7.75%

January 2011

With an increase of a quarter of a percentage point, the Basic Passive Rate is at 7.75%.

The basic passive rate is calculated each Wednesday by the Central Bank of Costa Rica.

"According to measurements by the Center for Research in Economics at the University of Costa Rica, this year the TBP will hover between 8% and 9%," stated Leticia Vindas in her article on El Financiero.

Costa Rica: Basic Rate at Highest this Year

November 2011

With a half-percentage point increase, the basic passive rate (TBP in Spanish) has reached 8.25%, the highest value yet recorded in 2011.

The increase in the TBP to 8.25% occurs after it remained for nearly the entire month of October at 8% and last week was only 7.75%.