Lower interest rates in Costa Rica will be reinforced by lower rates in the U.S.

Q COSTA RICA – Costa Rica’s interest rates are anticipated to follow the pattern of the United States, where the base rate is projected to reach its highest point in the upcoming weeks.

The Federal Funds Rate is expected to start decreasing as the objective of reducing the inflation rate from the past two years has been achieved. This rate has been at its highest in the last 15 years.

A drop in the United States’ rate of interest will make colones more readily available, as they will no longer have to be exchanged for dollars in pursuit of better returns (expressed as a percentage of the U.S. Federal Reserve base rate).

As inflation is stabilizing at its typical rate, the interest rates in the United States will be decreasing after having been elevated during the past year to accommodate the substantial amount of money that was put into circulation to assist those who were affected by the pandemic (percentages of rates from the US Inflation Calculator).