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PB 2022-032 CBCS further increases the pledging rate

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No. 2022-032

In response to higher expected interest rates on the international financial markets
CBCS further increases the pledging rate

Willemstad/Philipsburg – The Centrale Bank van Curaçao en Sint Maarten (CBCS) will tighten its monetary policy stance further by raising the pledging rate by 150 basis points to 3.50%. The pledging rate, that was last increased on June 7, 2022, is the rate at which the commercial banks can borrow at the CBCS in case of a liquidity shortage. The current increase of the pledging rate is consistent with a projected increase in interest rates on the international financial markets, particularly the fed funds rate. Although still solid, gross official reserves and the import coverage are expected to further decrease this year. Therefore, the Monetary Policy Committee (MPC)[1] of the CBCS will continue to monitor the economic and monetary developments in the monetary union closely and tighten the monetary policy stance further if warranted.

 

[1] The Monetary Policy Committee discusses the economic and monetary developments and the monetary policy stance at least on a quarterly basis. The Monetary Policy Committee takes decisions on the monetary policy stance and the deployment of monetary policy instruments that are ratified by the Board of Executive Directors of the CBCS.

 

 

Last updated: 22.09.2022 09:09