American Expatriate Costa Rica

Basic rate rises to 6%, the highest level since July 2017

The basic passive rate (TBP) rose this week to 6%, the highest level since July 2017.

The increase responded to a rise in interest paid by banks (public and private) and cooperatives. Together, these entities represent 92% of the deposits.

The basic rate is used to calculate the installments of most loans in long-term colones, so that its variation directly affects the pockets of people who have debts in national currency. This indicator is also used to calculate the payment of interest on some government bonds with long-term maturities.

Last year, a series of increases in the Monetary Policy Rate (TPM) -determined by the Central Bank and used to give direction to the rest of the market rates- caused interest increases by midyear.

The movements in the TPM, on the other hand, tried to give stability to the exchange market after showing high volatility. Changes in the basic rate have a different effect on each debtor, since it depends on the term agreed with the bank for the quota to be reviewed.

crhoy.com