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Central banks in Costa Rica and Mexico hold interest rates steady
Central banks in Costa Rica and Mexico have opted to maintain current interest rates following recent policy meetings.
The Central Bank of Costa Rica (BCCR) decided to hold its Monetary Policy Rate (TPM) at 3.00% per year. The decision, reached by a majority vote, reflects a cautious stance against external risks, including geopolitical tensions in the Middle East and the Russia-Ukraine conflict, which could impact commodity prices. This decision comes as Costa Rican inflation remains below the target range and economic activity shows signs of deceleration.
In Mexico, the Banco de México (Banxico) unanimously voted to keep its interbank overnight interest rate at 6.50%. This marks the fourth consecutive meeting at this level. Banxico noted that its policy does not need to react mechanically to the U.S. Federal Reserve's adjustments, as Mexico's macroeconomic conditions differ from those in the United States.
While general inflation in Mexico recently rose to 3.42% due to non-core components, core inflation has continued to moderate. Banxico expects general inflation to converge to its 3% target by the fourth quarter of 2027, though it warned of risks such as persistent core inflation and exchange rate volatility.
Entities
Banco Central de Costa Rica · Banco de México · Barclays · Central Bank of Costa Rica · Costa Rica · Federal Reserve · Mexico · OECD