Costa Rica’s central bank faced criticism for its decision to reduce interest rates by only 25 bps, contrary to the more aggressive 1-point cut advocated by the Costa Rican Union of Chambers and Associations of the Private Business Sector (UCCAEP). The monetary policy rate, which started at 6% in 2023, was under pressure to drop significantly to support favorable economic conditions. Bank leaders defended their cautious approach, pointing to the risks of excess liquidity and potential fluctuations in inflation and exchange rate.