In response to Costa Ricans' voracious appetite for credit in recent months, state banks hiked interest rates by an average 1 to 1.5 percent for loans in colones and 0.5 percent for those in dollars.

The average interest rate for a construction loan in colones went from 11.3 percent to 12 percent. Meanwhile, the same rate in dollars rose from 9.77 percent to 10.5 percent.

Interest rates have been at historic lows, spurring rampant spending in various sectors of the economy. The increase is thought to be a move in the direction of fighting inflation.

The rate hike went into effect as of the end of April.