2022 is likely to bring an increase in inflation, interest rates, and the exchange rate. Financial forecasts are complicated by the pandemic but there is agreement that we should prepare for a difficult year, financially speaking.
The Central Bank approved an increase of its monetary policy rate from 0.75% to 1.25%, dismissing the historically low rates it had for a year and a half.
The Federal Open Market Committee of the United States Federal Reserve kept the range of federal funds rate between 0 and 0.25%, yet expects three or more increases in the rate this year.
Experts advise that both households and companies budget carefully for loans with variable rates, whether new or old. The situation will also affect those whose income or expenses are based on interest rates. They should keep an eye on the fiscal deficit and foreign loans the Government gets.
Inflation started to accelerate in August. By November it reached 3.34% over the same month the previous year. The Central Bank forecasts general inflation between 3% and 4% for the first half of 2022. This means that for every ₡100,000 you spent last year, you’d have to spend ₡103,000 or ₡104,000 this year.
