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.
2026-02-13Eastern Caribbean Central Bank
Eastern Caribbean Central Bank Maintains Minimum Savings Rate at 2.0% and Discount Rates at 3.0% and 4.5%
The Eastern Caribbean Central Bank maintained the minimum savings rate at 2.0% and short- and long-term discount rates at 3.0% and 4.5%, respectively, citing stable domestic conditions and moderating global inflation. Eastern Caribbean Currency Union growth is projected at 3.3% in 2026, while the banking sector remains stable and highly liquid and the XCD backing ratio stands at 99.5%.