Rate cut to boost economy does not seem immediate

President Luis Guillermo Solís did not make the afternoon press conference Monday where more details of his Impulso program to boost the economy were supposed to be given.

In fact, the information provided was identical to what the president said in his Sunday speech, but there were photos. Sergio Alfaro Salas, the minister of the Presidencia, outlined the proposals, but reporters had more interest in questioning Olivier Castro Pérez, president of the Banco Central.

Among other statements, he repeated his warning against Costa Ricans accepting loans in dollars when their income is in colons. But a key statement was that there was a possibility that interest rates would decline two points.

Solís said Sunday that the Banco Central had told Casa Presidencial that it had taken steps that would result in a reduction in the base interest rate to benefit producers.

He said he hoped that as a result of these methods, the interest would drop about two points.

That appeared to be something immediate. But when a reporter challenged Alfaro about the president’s statement, the minister said that the reduction in the interest rate would be something that would take place as a result of the methods to boost the economy.

The Spanish-language press had seized on the rate reduction as a key part of the president’s plan and headlined the concept Monday.

Casa Presidencial had said earlier that Solís would be tied up Monday due to a scheduled health checkup.

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