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.
2026-07-10Eastern Caribbean Central Bank
Eastern Caribbean Central Bank Holds Minimum Savings Rate at 2.0% and Discount Rates at 3.0% and 4.5%
The Eastern Caribbean Central Bank Monetary Council held the minimum savings rate at 2.0%, short-term discount rate at 3.0% and long-term discount rate at 4.5%, while reaffirming the fixed exchange rate of XCD 2.70 per USD. The banking sector remained resilient, with reserves of XCD 5.9 billion and a 97.6% reserve backing ratio, although energy inflation, trade uncertainty and geopolitical risks could weigh on tourism and growth.