- Decision
- Maintain
- Rate change
- 0 bps
- discount rate
- 3%
The Eastern Caribbean Central Bank’s Monetary Council held the Minimum Savings Rate at 2.0% and the short-term and long-term Discount Rates at 3.0% and 4.5%, respectively, prioritising monetary and financial stability while supporting stronger growth, and matching the levels retained in February and July 2026. Across the Eastern Caribbean Currency Union, tourism activity continued to grow despite global uncertainty, although the region’s share of the global tourism market was declining. Commercial banks remained highly liquid, providing scope for increased private-sector lending. The Eastern Caribbean dollar remained strong and stable, with a reserve backing ratio of 98.0% and foreign currency reserves of XCD 6.0 billion as of the week ended 23 October 2026. Global growth remained resilient, supported by technological advances and artificial intelligence, but volatile oil prices, trade uncertainty and geopolitical conflicts posed significant risks, while rising global food prices added to household cost-of-living pressures. The Council called for stronger regional cooperation and timely implementation of strategic priorities to strengthen resilience and support sustainable 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 (ECCU) remained stable and accommodative, the currency 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 Monetary 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.
On 13 February 2026, the Council again held both rates, citing stable domestic conditions and moderating global inflation, while noting that the currency 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. Both rates remained unchanged on 30 October 2026, with the Council noting a reserve backing ratio of 98.0 per cent and foreign currency reserves of XCD6.0 billion as at the week ended 23 October 2026, while highlighting continued risks from volatile oil prices, trade uncertainty and geopolitical conflicts, alongside rising global food prices that added to household cost-of-living pressures.