The permanency for over six consecutive months of the Passive Basic Rate (TBP in Spanish) in the 8% explains good part of the behavior of the two major components of the market: state banks and Treasury.

The level of the offered rates in the state commercial banks, in the auctions, and negotiations in the secondary market of the Government titles are elements that influence mostly the grade of anchor on the reference rate.

According to the Central Bank of Costa Rica (BCCR), the offered efficiencies by the Banks of the public sector have determined between 40% and 70% of the TBP behavior during the last weeks.

Furthermore, the instruments of the Treasury have had a decreasing and significant participation inside the rate calculus, passing from an explanation of 37% of its January behavior, to a just 3,5% in the last checking.

“The internal finances of the Government’s deficit, and the State Banks toward the signs of a gradual recovery of the loan demand in the private sector, are demanding resources in the financing system. This explains the major relative participation of those in the determination of the TBP level”, commented Alberto Franco, Ecoanalisis economist.

Being these sectors the ones with most dynamism in the capitation of resources, the rates offered are those with biggest preponderance in the determination of the TBP according to the BCCR methology. In this sense, the banks of the public sector have increased their relative weight on its calculus.

“Basically, the uptake is being done by the commercial Banks, which have been diminishing their uptake rates since September. This could explain the need of liquidity on a lower justified cost in the projection of the inflation of the Central Bank”, said Melvin Garita, Director of analysis in Lafise Valores.

Another element that plays an important role in the behavior of the local rates is the exchange rate. The value of the dollar regarding the colon can sum or subtract attractiveness to the possibilities of investment.

On the other side, the behavior of the Basic Rate in the future according to specialists, there will be changes in the tendencies during these days.

If the expectation on keeping an inflation rate of 5%, there will be increased possibilities of tax Rates in the same current level. But, the price index to the consumer increased 1,635 in January, if the growing keeps this course, there will be more increasing numbers affecting the inflation expectancies.

The rates can take the tendency to drop when the inflation stabilizes. The central Government faces a deficit financial situation, however, it is considered sustainable and that the private sector and the market of capital could finance the deficit without pressing the increasing of the tax rates.