- Decision
- Maintain
- Rate change
- 0 bps
- Policy rate after decision
- 3%
The Monetary Council of the Eastern Caribbean Central Bank (ECCB) maintained the minimum savings rate at 2.0% and the discount rates at 3.0% for short-term credit and 4.5% for long-term credit, citing stable domestic conditions and moderating global inflation. The same levels have been maintained since February 2025, including at the July 2025 decision. Growth in the Eastern Caribbean Currency Union (ECCU) is projected at 3.3% in 2026, while the banking sector remains stable and highly liquid, supported by strong capital buffers, a rising capital adequacy ratio and declining non-performing loans. The EC dollar remains strong, with the backing ratio at 99.5% and foreign reserves totaling 5.83 billion Eastern Caribbean dollars. The global outlook is supported by technological investment and easing inflation pressures, although geopolitical tensions, shifting trade and policy regimes, commodity-price volatility and uncertainty over financial flows pose risks. The Council called for policy agility and continued efforts to direct excess liquidity toward small and medium-sized enterprises and other productive investment.
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.