Read the Beforeitsnews.com story here. Advertise at Before It's News here.

By CentralBankNews.info (Reporter)
Contributor profile | More stories

Story Views
Now:
Last hour:
Last 24 hours:
Total:

Costa Rica raises rate as it begins gradual tightening

Thursday, December 16, 2021 9:41

% of readers think this story is Fact. Add your two cents.

Costa Rica’s central bank raised its main interest rate and said its board of directors had agreed to maintain a path of gradual rate rises to keep inflation within its tolerance range of 3.0 percent, plus/minus 1 percentage point.
The Central Bank of Costa Rica (BCCR) raised its policy rate by 50 basis points to 1.25 percent, its first change in interest rates since June 2020 when it was lowered for the third time last year in response to the COVID-19 pandemic.

”With this adjustment, the monetary policy stance of the Central Bank continues to be expansive, but is closer to a neutral position,” the bank’s board said on Dec. 15.

Today’s rate hike comes after the central bank in its monetary policy report last month raised its forecast for growth this year to 5.4 percent from July’s projection of 3.9 percent, and the 2022 growth forecast to 4.5 percent from 3.7 percent as the economy returned to pre-pandemic output in the third quarter of this year.

The board said today the monthly index of economic activity rose by an annualized quarterly rate of 6.4 percent in October and since June it has been above the pre-pandemic level seen in February 2020.

The central bank also said the output gap was now close to being eliminated and headline inflation has been rising, hitting 3.35 percent in November.

BCCR forecast headline inflation will remain above 3 percent by the end of this year and in the first half of 2022 but still within the tolerance range.

Next year headline inflation is expected to moderate and remain below the target in the second half while core inflation will remain below or around the target.

However, given that risks to those projections are tilted to the upside, the central bank said it considered it appropriate to initiate a process of gradual increases in the policy rate to bring it closer to a neutral stance in an orderly fashion.

www.CentralBankNews.info

Source: http://www.centralbanknews.info/2021/12/costa-rica-raises-rate-as-it-begins.html

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)

Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!

Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).

Comments

Online:
Visits:	1,605,592,366
Stories:	8,137,681