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Costa Rica cuts rates, bucking Latin American trend

Argentina resumes monetary tightening, while Paraguay continues to hold

Central Bank of Costa Rica
The Central Bank of Costa Rica

Costa Rica’s central bank became the first inflation-targeting Latin American central bank to cut interest rates this year. But Argentina resumed rate increases after year-on-year inflation rose above 100%, while Paraguay’s central bank continued to hold rates.

Costa Rica: The Central Bank of Costa Rica’s board, which sets the monetary policy rate, cut that rate by half a percentage point to 8.5% on March 15. Between December 2021 and October 2022, the central bank raised its policy rate from 0

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