On Wednesday, the Central Bank announced a new reduction in the Monetary Policy Rate (MPR) now at 4.5%. The entity continues to detect pressures in the economy that would lead to inflation outside the target range (between 2% and 4%).
The idea behinf lowering the TPM is to make credits in colones more attractive and the inflation will be assenting near to 3% slowly. That is the goal for 2019.
This is the third reduction that the Central announced in the TPM during 2019.
In addition, together with the reduction in the minimum legal reserve, they set up actions to lower the credit in colones and reduce the dollarization of the national economy.
It is expected that this new decrease in the MPR will help banks gradually lower their interest rates.