Costa Rica cuts rates again as inflation turns negative

Strong currency and base effects contribute to unusual readings, central bank board says

Central Bank of Costa Rica
Central Bank of Costa Rica
Haakon S Krohn/Wikimedia Commons (https://bit.ly/3FMbD8F)

Costa Rica’s central bank extended its rate-cutting campaign for a fourth consecutive meeting as inflation reached negative territory.

The Central Bank of Costa Rica board lowered its monetary policy rate by 50 basis points to 6.5%. bringing total cuts since March to 250bp. The board said inflation risks leant towards the downside.

Inflation has fallen much faster in Costa Rica than in other Latin American countries. In June, year-on-year headline inflation fell into negative territory, at -1%

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