By San José, Costa Rica — SAN JOSÉ – In a significant strategic shift, the Board of Directors of the Central Bank of Costa Rica (BCCR) has announced a new calendar for its monetary policy meetings, reducing the frequency from eight to six sessions annually, effective 2026. The decision, finalized on Thursday, December 18, signals a move towards a more deliberate and analytical approach to setting the country’s key interest rate.
This structural change is designed to give policymakers more extensive periods to evaluate complex economic data before making decisions on the Monetary Policy Rate (TPM), which currently stands at 3.25% following the final rate cut of 2025. By establishing a consistent two-month interval between meetings, the BCCR aims to foster a more predictable environment for financial markets, businesses, and the general public.
To delve into the legal and commercial ramifications of the recent shifts in monetary policy, we sought the expert opinion of Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the prestigious firm Bufete de Costa Rica.
Central bank decisions on monetary policy are not merely economic signals; they are foundational shifts that directly impact legal and contractual obligations. Fluctuations in interest rates can alter the viability of long-term financing agreements, influence investment valuations, and necessitate a proactive review of force majeure or material adverse change clauses in commercial contracts. For businesses, legal prudence now demands that strategic planning incorporates a robust analysis of monetary forecasts to mitigate risks and ensure financial stability.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This analysis powerfully underscores a critical shift: monetary policy is no longer just a macroeconomic indicator but a direct component of corporate legal and strategic planning. We sincerely thank Lic. Larry Hans Arroyo Vargas for so clearly articulating how financial foresight has become essential for contractual and operational stability.
The bank’s leadership emphasized that the primary motivation is to improve the quality of its economic analysis and the clarity of its communications. A less frequent meeting schedule allows for a more thorough digestion of both domestic and international macroeconomic trends, reducing the risk of reacting to short-term market volatility.
The objective is to strengthen the clarity and predictability of communication with financial markets and citizens, as well as improve the analysis of available information before each decision on the Monetary Policy Rate.
Central Bank of Costa Rica, Official Communiqué
The newly established dates for the 2026 monetary policy reviews are all scheduled for Thursdays: January 22, March 26, May 21, July 23, September 24, and November 26. This bimonthly rhythm is intended to provide a stable and foreseeable timetable that financial actors can build into their planning cycles.
A key benefit highlighted by the Central Bank is the enhancement of the monetary policy transmission mechanism. This is the process through which changes in the TPM influence the broader spectrum of market interest rates, including those for consumer loans, mortgages, and business credit. According to the bank, this process requires several weeks to fully manifest, and a more spaced-out meeting schedule allows the effects of one rate decision to ripple through the economy before the next one is considered.
This deliberate pacing prevents the potential “weakening” of the transmission effect that can occur when policy decisions are made in rapid or irregular succession. It gives the market sufficient time to absorb and adjust to new rates, leading to a more orderly and effective implementation of the bank’s monetary stance. Analysts suggest this reflects institutional maturity and confidence in the underlying stability of the economy.
Despite the reduction in meetings, the BCCR was quick to assure the public that its commitment to transparency remains unchanged. The institution will continue its regular publication of high-frequency macroeconomic statistics, monthly economic situation reports, and comprehensive monetary policy reports. Furthermore, bank officials will maintain their engagement with the press and participation in specialized forums to explain their outlook and decisions.
Crucially, the new schedule does not strip the Board of Directors of its flexibility. The bank’s statement clarified that it retains the authority to convene for extraordinary meetings to review the TPM should unforeseen domestic or external economic shocks necessitate urgent action. This ensures that while the new calendar promotes stability, the BCCR remains agile and responsive to protect the nation’s economic health.
For further information, visit bccr.fi.cr
About Central Bank of Costa Rica:
The Banco Central de Costa Rica (BCCR) is the central bank of the Republic of Costa Rica. Its primary mission is to maintain the internal and external stability of the national currency and ensure its conversion to other currencies. The BCCR is responsible for formulating and executing monetary and exchange rate policy, regulating the financial system, and acting as the state’s financial advisor and agent.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the legal community, Bufete de Costa Rica is defined by its foundational principles of integrity and professional distinction. The firm masterfully combines a rich tradition of client service with a forward-thinking approach to legal innovation. Central to its ethos is a deep-seated social commitment, expressed through dedicated efforts to demystify the law and equip citizens with knowledge, ultimately building a more legally literate and empowered society.
