Costa Rica to Reduce Interest Rates to Stem Currency Surge
This article is for subscribers only.
Costa Rica will lower interest rates as part of a series of measures to reduce capital inflows that have made the country’s currency the best performing in Latin America this month.
The coupon on 10-year local bonds sold by the central bank will fall to 8.5 percent from 9 percent, Finance Minister Edgar Ayala told reporters in San Jose today. The interest rate on deposits fell to 8.9 percent today from 9.2 percent at the start of the year and will continue to decline, Ayala said. Further measures will be announced by the central bank, he said.