St Kitts & Nevis: 107th Meeting of ECCB Monetary Council held

The 107th Meeting of The Eastern Caribbean Central Bank (ECCB) Monetary Council was held this past week at the ECCB Campus in St Christopher, the meeting was chaired by Camillo Gonsalves, the Minister of Finance.

The ECCB is a currency union and quasi-currency board that is responsible for monetary stability and safeguarding the banking system in the Eastern Caribbean Economic and Currency Union (OECS/ECCU).

The ECCB was established in October of 1983 and is the monetary authority for eight island economies including

• Anguilla
• Antigua and Barbuda
• Dominica
• Grenada
• Montserrat
• Saint Kitts and Nevis
• Saint Lucia
• Saint Vincent and the Grenadines

The meeting also provided updates on Greening the Financial System Initiative, namely through the green finance framework; climate risk stress-testing and assessment framework; and renewable energy financing solutions via the planned regional Renewable Energy Infrastructure Investment Facility (REIIF) project. Prime Minister Pierre alongside other ECCB council members received the governor's report of the monetary, credit and financial conditions in the ECCU from the governor of the ECCB, Timothy Antoine. The Governor’s Report titled The Big Push: Implementation for Impact in an Era of Elevated Uncertainty, included an analysis and summary of the monetary conditions, financial stability and macroeconomic developments ongoing in the ECCU.

The report suggests that the ECCU is en route on the course to positive GDP growth this fiscal year, following an improved fiscal report in 2023. The report suggests that the monetary, credit and financial conditions in the ECCU are stable; the report confirms that the ECCU banking system is resilient, competent and stable.

On the recommendation of the governor, the monetary council agreed to

• Maintain the Minimum Saving Rate at 2%; and
• Maintain the Discount Rate at 3% for short-term credit and 4.5% for long-term credit

The council agreed to gather for the 108^th meeting at the ECCB Monetary Council on July 26, 2024, in Anguilla.

The ECCB has also listed out and elaborated ten key points of the convention summarised in this article which include

• Monetary Stability
• Financial Stability
• Fiscal and Debt Sustainability
• Growth and Competitiveness
• Financial Inclusion
• Updates on the Greening the Financial System Initiative
• Reports received on BAICO, CLICO, ECAMC, ECPCGC and ECSRC
• Monetary Council’s Engagement with International Monetary Fund Deputy Managing Director Bo Li
• Date and Venue of the 108th Meeting of the Monetary Council
• Participation