The board of directors of the Central Bank of Costa Rica (BCCR) agreed this Thursday to reduce its monetary policy rate (TPM) from 6% to 5.75% starting this Friday, January 19.
The monetary policy rate is one of the tools that the Central Bank has to influence the economy and, therefore, it also influences your savings, your credit installments and even what you consume. It is also called the reference rate.
Changes in the MPR can have effects on the economic conditions of the country, as it adjusts the cost of money in the economy.
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Shirley Álvarez, researcher at the Institute for Research in Economic Sciences (IICE) of the University of Costa Rica (UCR), explained that this reduction will help the interest rates of people who have loans.
“Changes in the monetary policy rate are transmitted to the rest of the interest rates in the financial system. In this case, the decrease in the MPR will cause the interest rates that people pay for a loan to decrease in the short term.
“This means that consumers seeking loans to purchase homes, cars or other assets could get lower interest rates. As a result, monthly payments can be more affordable,” she highlighted.
Does the benefit for people apply from this moment?
“The effects of monetary policy rate reductions are not immediate. We could expect that in three and six months the interest rates of the financial system will be lower, as a result of the most recent reduction, as well as past reductions in this economic indicator,” added Álvarez.
2024-01-19 22:18:38
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