Money in Costa Rica
Costa Rica - Money
Central Bank stands pat in September
At its 15 September meeting, the Central Bank of Costa Rica kept the monetary policy rate unchanged at its record low of 0.75%—where it has been for over a year. Consequently, the Bank opted to continue its loose and countercyclical monetary policy stance, aiming to provide further support to the economic recovery and boost job creation.
The decision came amid an ongoing economic recovery and subdued price pressures. GDP growth hit an over 23-year high in Q2, while economic activity in July grew at the quickest pace since September 1992. That said, both readings were bolstered by a favorable base effect and the Bank noted that unemployment levels remain elevated, thus a rate hike was not pertinent. Moreover, despite accelerating on average in July–August, price pressures remain low—August’s inflation came in at 1.7%, below the lower bound of the 2.0%–4.0% target band—and the Bank deemed the increase to be the result of transitory factors, further cementing its decision to hold the rate steady.
Looking ahead, in its communiqué the Bank did not provide any explicit forward guidance but reaffirmed its slightly more hawkish tone from July’s meeting, when it removed its previous statement that it would continue its loose monetary policy stance for as long as inflation remained below 3.0%. All but one of our panelists still see rates on hold at 0.75% this year.
The next monetary policy meeting is scheduled for 25 October.
FocusEconomics Consensus Forecast panelists project that the monetary policy rate will end 2021 at 0.86% and 2022 at 1.58%.
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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September 30, 2021
GDP rebounded at the quickest pace in over 23 years in the second quarter of 2021 (Q2: +9.4% yoy; Q1: -2.1% yoy), according to rebased national accounts data, with the new base year referring to 2017 prices.
September 15, 2021
At its 15 September meeting, the Central Bank of Costa Rica kept the monetary policy rate unchanged at its record low of 0.75%—where it has been for over a year.
September 10, 2021
The economy gained further momentum in June, with economic activity rising 8.1% in annual terms, following May's 8.0% increase and marking the strongest growth since April 2007.
September 9, 2021
Consumer prices increased 0.28% in August over the previous month, contrasting the 0.21% fall seen in July.
August 13, 2021
Consumer prices dropped 0.21% in July over the previous month, contrasting the 0.54% increase recorded in June.