Macroeconomic Forecast Costa Rica

October 2006 | Macroeconomic Forecasts

BMI View: Inflation and interest rates are trending lower in Costa Rica. September's 0.16% m-o-m deflation brought the year-on-year figure to 11.24%, the lowest outturn since the end of 2003. Given our increasingly dovish outlook, based on the central bank's decision to increase exchange rate credibility and target inflation, we have decided to lower our interest rate forecasts for this year and next. We project the lending interest rate to fall to 22.0% by year-end (revised down from 26.0%) and to 20.0% by end-2007 (from 26.3%).

If you would like to subscribe to Central America Monitor and gain instant access to this article, please click here to subscribe.

If you would like to take a trial to Central America Monitor please click on the trial link below.