The Central Bank of Costa Rica has raised its policy rate in a bid to curb inflationary pressures, despite recent data showing low inflation.
The board of governors made the decision to hike rates by 25 basis points to 5.25%. This was despite September economic data putting inflation at 2.2%, towards the bottom of the central bank’s 2–4% target range and slowing GDP growth.
The move comes as Costa Rica’s government faces considerable opposition to proposed fiscal changes and its currency comes
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