Costa Rican beach from above

Costa Rica Monetary Policy December 2022

Costa Rica: Central Bank keeps the policy rate on hold at 9.00% at its December meeting

At its 14 December meeting, the Central Bank of Costa Rica (BCCR) kept the policy rate unchanged at 9.00%. Decembers decision marked the end of a sequence of eight consecutive rate hikes since the start of the tightening cycle in December 2021.

The move came after both inflation and 12-month inflation expectations declined for the third consecutive month in November. The BCCR now projects that inflation will return to the target range of 2.0%—4.0% in H1 2024, earlier than anticipated at the previous meeting. A less adverse inflation panorama gave the Bank the leeway to stand pat.

In its communique, the Bank assessed its current policy stance as restrictive and emphasized that rates will have to remain elevated to achieve its price stability objective. Additionally, the press release contained both dovish and hawkish elements: While the Bank commented on the slowdown in both domestic and global growth, it also highlighted that the evolution of producer prices remained an upside risk for consumer prices. That said, most of our panelists project rate cuts in 2023.

The next meeting is scheduled for 25 January.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest