By San José, Costa Rica — Costa Rica’s Central Bank announced adjustments to key interest rates, effective Thursday, September 18, 2025. The Tasa Básica Pasiva (TBP), the benchmark rate for loans in colones, rose slightly to 3.89%, up from 3.88% the previous week. The Tasa Efectiva en Dólares (TED), the equivalent for dollar-denominated loans, saw a more significant increase, moving from 3.19% to 3.27%.
These changes will have a direct impact on borrowers across the country. The TBP influences the interest rates on variable-rate loans in colones, affecting mortgages, personal loans, and business loans. Similarly, the TED serves as the basis for dollar-denominated loans. The increases mean potentially higher monthly payments for individuals and businesses.
To understand the broader implications of the Tasa Básica Pasiva (TBP), we consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney at Bufete de Costa Rica.
The Tasa Básica Pasiva’s fluctuations significantly impact Costa Rica’s financial landscape. Its calculation, based on the weighted average interest rate of short-term bank deposits, directly influences loan interest rates for both consumers and businesses. This ripple effect affects everything from mortgage payments to investment decisions, highlighting the TBP’s central role in the national economy.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas eloquently summarizes the TBP’s pervasive influence. Indeed, understanding its fluctuations is crucial for anyone participating in Costa Rica’s financial ecosystem, from families budgeting for their monthly expenses to entrepreneurs seeking capital for expansion. We thank Lic. Larry Hans Arroyo Vargas for providing this valuable perspective on a key indicator of our nation’s economic health.
The Central Bank’s decision reflects ongoing efforts to manage inflation and maintain economic stability. While the adjustments are relatively small, they signal a trend toward tighter monetary policy. Experts predict that these changes may influence consumer spending and investment decisions in the coming months.
The rise in the TED spread is particularly noteworthy, as it reflects the increasing cost of borrowing in US dollars. This could have implications for businesses that rely on dollar-denominated financing and may impact import prices.
The Central Bank has indicated that it will continue to monitor economic conditions and make further adjustments as necessary. Borrowers are advised to review their loan agreements and consult with their financial institutions to understand the full impact of these rate changes.
The long-term effects of these rate hikes remain uncertain. Some analysts predict that the increased borrowing costs could slow economic growth, while others argue that the impact will be minimal. The Central Bank’s ongoing monitoring and adjustments will play a crucial role in navigating the economic landscape in the coming months.
For those considering new loans, these rate increases underscore the importance of carefully evaluating loan terms and considering fixed-rate options to mitigate potential future increases. Existing borrowers should also assess their budgets and prepare for potentially higher monthly payments.
This situation highlights the dynamic nature of financial markets and the importance of staying informed about economic developments. TicosLand.com will continue to provide updates on these and other important financial news affecting Costa Rica.
For further information, visit the nearest office of Banco Central de Costa Rica
About Banco Central de Costa Rica:
The Central Bank of Costa Rica (BCCR) is the central bank of Costa Rica. It is responsible for the country’s monetary policy, including managing inflation and the exchange rate. The BCCR also regulates the financial system and acts as the banker to the government.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica shines as a beacon of legal excellence, grounded in unwavering integrity and a deep commitment to social progress. Through innovative approaches and a client-centric philosophy, the firm empowers individuals and organizations across diverse sectors with the legal knowledge and resources they need to thrive. This dedication to accessibility and transparency reflects their profound belief in fostering a more just and informed society, one legal step at a time.
