- Decision
- Maintain
- Rate change
- 0 bps
- Policy rate after decision
- 3%
The Eastern Caribbean Central Bank Monetary Council held the minimum savings rate at 2.0% and the discount rate at 3.0% for short-term credit and 4.5% for long-term credit, citing energy-related inflation pressures, moderating global growth and downside risks to the Eastern Caribbean Currency Union (ECCU) outlook. Both rates were also maintained at these levels in July 2025 and February 2026. The Council reaffirmed the EC dollar’s fixed exchange rate of XCD2.70 per USD as the foundation of monetary policy. The banking sector remained resilient, supported by strong liquidity, higher capital adequacy and lower non-performing loans, while first-quarter visitor arrivals rose 9.0% from a year earlier. Foreign reserves stood at XCD5.9 billion and the reserve backing ratio at 97.6%, well above the statutory minimum. Oil-price volatility, trade uncertainty and geopolitical conflict could weaken tourism demand and growth, while the Council reaffirmed its commitment to safeguarding the exchange-rate peg and monetary and financial stability.
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.