The Central Bank of Costa Rica decided to maintain the Monetary Policy Rate at 3.5% per annum, reaffirming its commitment to price stability and prudent policy.
According to the statement, September year-on-year inflation was -1.01GDP3T, while underlying indicators were only 0.21GDP3T, both below the target range.
Projections indicate that the inflation to remain negative until early 2026, The impact of the climate shock at the end of last year, and not because of monetary policy.
On the other hand, economic activity is showing signs of acceleration, with an increase in growth of the Monthly Index of Economic Activity of 4.8% in August.
The Central Bank also highlighted the reduction in unemployment and the increase in real wages, although with lower labor participation due to demographic and family factors.
Finally, the Board of Directors considered that the current level of the rate is consistent with a neutral monetary stance and will continue to transmit the effects of previous reductions in financial system rates.