Money in Costa Rica

Costa Rica Money | Economic News & Forecasts

Costa Rica - Money

Central Bank again cuts rates in September

At its 18 September monetary policy meeting, the Central Bank of Costa Rica took market analysts by surprise and cut the policy interest rate to 3.75% from 4.00%.

The Central Bank delivered its fifth interest rate cut this year as part of efforts to boost economic growth. Moreover, inflation was unchanged in August at July’s 2.9% as weak-demand pull inflationary pressures have countered the effect of the VAT introduced in July, which has continued to stoke inflationary pressures. Looking ahead, the Central Bank foresaw inflation remaining within its 2.0%–4.0% target range in the short-term. Taking this into account, and bearing in mind that interest rates have recently been cut abroad, most notably by the U.S. Federal Reserve, the Central Bank of Costa Rica concluded it had room to make its fifth rate cut this year.

Going forward, many of our panelists expect the Central Bank to continue pushing ahead with interest rate cuts to help boost the economy, although the extent to which it can continue cutting rates will be limited by how much of an inflationary impact the cuts have and whether central banks abroad, particularly the Federal Reserve, continue to adopt a dovish stance too.

FocusEconomics Consensus Forecast panelists project the policy interest rate to end 2019 at 3.50% and 2020 at 3.40%.

Costa Rica - Money Data

2013  2014  2015  2016  2017  
Money (annual variation in %)14.3  11.7  6.1  2.1  -1.0  

Sample Report

5 years of economic forecasts for more than 30 economic indicators.

Download

Costa Rica Money Chart


Costa Rica Money
Note: Annual variation of M2 in %.
Source: Costa Rica Central Bank and FocusEconomics calculations.

Costa Rica Facts

ValueChangeDate
Exchange Rate576.5-0.57 %Sep 04

Sample Report

Get a sample report showing our regional, country and commodities data and analysis.

Download

Request a Trial

Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.

Sign Up

Economic News

  • Costa Rica: Central Bank again cuts rates in September

    September 18, 2019

    At its 18 September monetary policy meeting, the Central Bank of Costa Rica took market analysts by surprise and cut the policy interest rate to 3.75% from 4.00%.

    Read more

  • Costa Rica: The economy accelerates in July

    September 11, 2019

    Annual economic growth in cyclically-adjusted terms accelerated to 1.5% in July from June’s revised 1.3% (previously reported: +1.5% year-on-year), nevertheless, economic activity remained subdued by historical standards. Although economic growth ticked up in July, partly on strong activity growth in the ICT sector, it was still hampered by a continued decline in activity in the agriculture sector, which is struggling following a prolonged spell of dry weather, partly due to the El Niño effect.

    Read more

  • Costa Rica: Government proposes tightening the belt in 2020

    September 9, 2019

    On 30 August, the fiscally-strained government of Costa Rica presented to Congress its 2020 budget proposal, which outlines cutting spending by 4.3% compared to this year.

    Read more

  • Costa Rica: Inflation holds steady in August, while the Central Bank leaves rates unchanged on 21 August

    September 6, 2019

    Consumer prices fell 0.1% in August compared to the previous month, contrasting the 0.7% jump in July, which was a three-and-a-half year high and due to the introduction of an expanded VAT in the month.

    Read more

  • Costa Rica: The economy remains sluggish in June

    August 9, 2019

    Annual economic growth in cyclically-adjusted terms inched up to 1.5% in June from May’s revised 1.4% (previously reported: +1.3% year-on-year), which represented the weakest reading since December 2009. Growth remained historically subdued in June due to a continued decline in activity in the agriculture sector, which is struggling following a prolonged spell of dry weather, partly due to the El Niño effect.

    Read more

Search form