Costa Rica makes largest hike since 2010
Central bank predicts that inflation will not reach its target range until 2024.
The Central Bank of Costa Rica ordered a 200-basis point increase in the policy rate to 7.5% on July 27, as it accelerated its tightening cycle.
The move is the largest of six consecutive rate hikes by the Central Bank of Costa Rica since the end of 2021. In total, the BCCR has raised the policy rate by 675bp, with progressively larger increases.
The hike – the largest since October 2010 – is in response to headline inflation that first breached the inflation target – 3% ± 1 – in February
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