- Decision
- Maintain
- Rate change
- 0 bps
- discount rate
- 3%
The Monetary Council of the Eastern Caribbean Central Bank left its policy settings unchanged, keeping the minimum savings rate at 2.0 % and the central bank’s discount rate at 3.0 % for short-term credit and 4.5 % for long-term credit, judging that the Eastern Caribbean Currency Union (ECCU) can sustain a projected 3.5–4.5 % GDP expansion in 2025 on the back of tourism, post-hurricane reconstruction and infrastructure investment despite heightened global uncertainty. The minimum savings rate remains the floor on commercial-bank deposits, while the discount rate continues to guide official lending to governments and banks. The banking sector is reported as well-capitalised and highly liquid, with excess liquidity of about EC$1.5 bn at end-2024 and easing credit conditions, especially for mortgages. External buffers are solid: foreign reserves increased to EC$5.5 bn and the foreign-asset backing ratio rose to 98.2 %, underlining the “strong” EC dollar. The Council noted improved fiscal performance in 2024, EC$1.2 bn in regional securities issuance (up 9 % year on year) and ongoing initiatives to widen financial inclusion, advance a credit bureau and establish a regional regulator for Citizenship by Investment programmes, all aimed at reinforcing financial stability and supporting sustained growth.
Rate evolution
Over the period covered, the Eastern Caribbean Central Bank kept its key administered rates unchanged, maintaining the Minimum Savings Rate at 2.0 per cent and the Discount Rate at 3.0 per cent for short-term credit and 4.5 per cent for long-term credit. The decision reflected an assessment that monetary, credit and financial conditions in the Eastern Caribbean Currency Union remained stable and accommodative, the EC dollar stayed strong, foreign reserves increased, and member economies had shown resilience, with tourism, post-hurricane Beryl reconstruction, infrastructure investment and domestic construction still expected to support activity. At the same time, the Council noted that the 2025 growth outlook had been lowered to 3.3 per cent and that the global environment had become considerably more uncertain, as weaker trade prompted lower world growth projections and energy prices, though expected to moderate, remained vulnerable to geopolitical developments.
In a subsequent communication, the Council maintained the existing stance while stressing that risks to the ECCU outlook were tilted heavily to the downside amid renewed geopolitical and geoeconomic tensions, even as the banking system remained resilient and liquid and private sector credit accelerated, particularly through household lending. On 13 February 2026, it again held both rates, citing stable domestic conditions and moderating global inflation, while noting that the EC dollar remained strong, the banking sector was stable and highly liquid, and risks from geopolitical tensions, shifting trade and policy regimes, commodity price volatility, and uncertainty around global mobility and financial flows remained elevated. On 10 July 2026, the Council again maintained the rates as the reserve backing ratio stood at 97.6 per cent and foreign reserves at XCD5.9 billion, while flagging downside risks to growth from oil-price volatility, trade uncertainty and geopolitical conflict that could weaken tourism demand.