American Expatriate Costa Rica

Basic rate reaches 4.8% and could rise at a faster rate

The basic passive rate (TBP) reached 4.8%, the highest level recorded in the year according to data provided by the Central Bank on its Internet site.

The indicator had not reach this figure since September 2016. From January to date, the rate has increased by 35 basis points.

The increase this week is due to the increases in rates actually paid by public and private banks in all their terms.

Since the end of April, the base rate has shown an upward trend, which was strengthened at the end of May following the strong increase in the monetary policy rate (MPR) set by the Central Bank.

Despite this and the announcement that the TPM will continue to be used as an instrument to favor the preference of Costa Ricans to save in colones, the monetary authority will seek to accelerate the transfer of movements from the TPM to the TBP.

To this end, it restarted the operation of the Central Direct platform, for deposits in colones at different times.

The idea is that the offered rates give direction to the rest of interest rates in the economy.

The basic rate is used as a reference for long-term loans in colones, as well as the payment of coupons of some investments in local currency.

crhoy.com