Costa Rica’s central bank lowered its key interest rate by 25 bps points to 5.75%, continuing the trend from the previous meetings in October and December. The country experienced 1.8% YoY deflation in December, with core inflation measures averaging 0.2% YoY, below the 3% target range (±1 pp). Despite these figures, the central bank maintains a cautious stance and anticipates a gradual rise in inflation, expecting it to return to the target range towards year-end, a delay from the previous forecast of early H2 2024.