(MENAFN – Caribbean News Global) By ECCB
BASSETERRE, St Kitts – The 109th meeting of the Eastern Caribbean Central Bank’s Monetary Council took place virtually on October 18, 2024.
Monetary Stability
The council received a report on the financial conditions in the Eastern Caribbean Currency Union (ECCU). The report, titled The Big Push: Pursuing Bold Actions for Transformation, discussed global and regional updates and their potential impact.
- Economic growth in ECCU remains strong, driven by tourism and construction.
- The global economy is stable despite geopolitical issues.
- Inflation in the ECCU has decreased from 9.5% in 2022 to 1.9% in mid-2024.
- The 2024 hurricane season poses a significant risk to the economies.
The EC currency remains strong, with reserves at EC$5.4 billion and a backing ratio of 98.3%, well above the 60% minimum.
Financial Stability
- The ECCU banking system is stable and well-capitalized.
- Low interest rates are expected to continue.
- Consumer lending is growing, supporting the construction sector.
Key Decisions:
- Minimum savings rate remains at 2.0%.
- Discount rates are maintained at 3.0% for short-term and 4.5% for long-term lending.
Fiscal and Debt Sustainability
Fiscal conditions are improving, with the Regional Government Securities Market showing promising growth.
Growth and Competitiveness
The ECCU is expected to see around 5% economic growth in 2024, driven by tourism and construction.
Financial Inclusion
The DCash Pilot Project has closed, and preparations for a new digital currency solution are underway.
Change of Currency Design
New EC$100 banknotes featuring local figures may circulate by late 2027.
Greening the Financial System Initiative
A regional Renewable Energy project is being developed, aimed for rollout in 2025.
Upcoming Meeting
The 110th Monetary Council meeting is set for February 14, 2025, at the ECCB in St Kitts and Nevis.
Council Participation
Meeting attended by:
- Dr. Ellis L. Webster, Chair, Anguilla
- Gaston Browne, Prime Minister, Antigua and Barbuda
- Dennis Cornwall, Minister, Grenada
- Philip J. Pierre, Prime Minister, Saint Lucia
- Camillo Gonsalves, Minister, Saint Vincent and the Grenadines
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