Money in Costa Rica
Costa Rica - Money
Central Bank stands pat in April meeting
At its 21 April meeting, the Central Bank of Costa Rica opted once again to maintain the monetary policy rate at its record low of 0.75%, where it has been since 17 June 2020. As such, the Bank decided to continue its accommodative and countercyclical monetary policy stance, with the aim of supporting the economic recovery.
The decision reflected the Bank’s assessment that while economic conditions have continued to gradually improve so far this year, the economy is still underperforming, and activity remains well below pre-pandemic levels. Moreover, the Bank noted that although the unemployment rate has fallen recently, it remains elevated, having decreased by almost six percentage points over the last seven months. The Bank pointed to the uncertainty that still surrounds growth projections, which depend on the evolution of the pandemic and the speed of the vaccine rollout. Lastly, regarding price pressures, the Bank sees inflation remaining below its 3.0% target in the coming two-year period, leaving it with room to maintain its expansionary stance.
Looking ahead, in its communiqué the Bank stated it will continue with its current accommodative policy stance for as long as inflation is projected to remain below 3.0%, in a bid to support the recovery and job creation. It noted that its forward guidance should help businesses and consumers to know what to expect in terms of future interest rates, thus further supporting the economic recovery. As such, most of our panelists see rates on hold this year, although a few expect the Bank to tighten its stance.
The next monetary policy meeting is scheduled for 16 June.
FocusEconomics Consensus Forecast panelists project that the monetary policy rate will end 2021 at 1.33% and 2022 at 2.13%.
Costa Rica - Money Data
|Money (annual variation in %)||6.1||2.1||-1.0||-0.4||6.2|
5 years of economic forecasts for more than 30 economic indicators.
Costa Rica Money Chart
Source: Costa Rica Central Bank and FocusEconomics calculations.
Costa Rica Facts
|Exchange Rate||571.0||-0.57 %||Jan 01|
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April 21, 2021
At its 21 April meeting, the Central Bank of Costa Rica opted once again to maintain the monetary policy rate at its record low of 0.75%, where it has been since 17 June 2020.
April 9, 2021
Economic activity fell 4.7% in annual terms in February (January: -4.8% yoy).
March 31, 2021
The economy shrank in the final quarter of 2020, albeit at a notably more moderate pace than in the third quarter (Q4: -3.7% year-on-year; Q3: -7.0% yoy), according to rebased national accounts data, with the new base year referring to 2017 prices.
March 17, 2021
At its 17 March meeting, the Central Bank of Costa Rica once again decided to keep the monetary policy rate unchanged at its record low of 0.75%, where it has been since 17 June last year.
March 15, 2021
Economic activity slid 4.8% year-on-year in January (December: -5.0% yoy).