The central bank of Costa Rica lowered its benchmark interest rate by 25 basis points to 6% during its policy meeting on December 20, 2023. The bank has now reduced its policy rate by an aggregate of 300 basis points since March. The board noted that central banks in advanced economies, especially in the US, signaled intention to cut interest rates amid easing inflation. Meanwhile, Latin American economies continued with gradual reductions in policy rates. The central bank also said that while economic growth and employment remained robust, headline and core inflation rates in the country have posted well below targets in November. Easing domestic inflationary pressures were attributed to the reversal of global supply shocks, leading to a decline in raw materials and transportation costs, leading to lower food prices.
