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Policy Interest Rate in Costa Rica
The policy rate ended 2022 at 9.00%, up from the 1.25% end-2021 value, and higher than the reading of 3.75% a decade earlier. For reference, the average policy rate in the Central America and Caribbean was 6.40% at end-2022. For more interest rate information, visit our dedicated page.
Costa Rica Interest Rate Chart
Note: This chart displays Policy Interest Rate (%) for Costa Rica from 2014 to 2023.
Source: Macrobond.
Costa Rica Interest Rate Data
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| Policy Interest Rate (%, eop) | 2.75 | 0.75 | 1.25 | 9.00 | 6.00 |
| Basic Rate (%, eop) | 5.75 | 3.50 | 2.90 | 6.35 | 5.36 |
Central Bank holds policy rate in June
At its meeting on 20 June, the Central Bank of Costa Rica (BCCR) unanimously decided to maintain the policy rate at 4.75%.
The Bank decided to pause its monetary easing cycle, highlighting that risks to the inflation outlook are skewed to the upside and include supply disruptions stemming from geopolitical tensions and weather conditions, as well as portfolio re-composition effects caused by a negative interest rate differential with the U.S. Fed. Another factor influencing the Central Bank's decision was the slowdown in the deflationary trend, as consumer prices dropped 0.3% year on year in May (April: -0.5%). The Bank sees prices rising again in H2 and expects inflation to return to the 2.0–4.0% target in Q1 2025.
The Central Bank reiterated its commitment to moving towards monetary policy neutrality in a gradual and prudent manner, indicating that any future changes to the TPM will be carefully considered in response to macroeconomic conditions and risk assessments. The Consensus is for the Bank to cut rates by around 50 basis points by year-end. The next monetary policy meeting is scheduled for 18 July.
Consensus Forecasts and Projections for the next ten years
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Costa Rican interest rate projections for the next ten years from a panel of 13 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable interest rate forecast available for Costa Rican interest rate.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Costa Rican interest rate projections.
Want to get access to the full dataset of Costa Rican interest rate forecasts? Send an email to info@focus-economics.com.
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