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Amid increased global uncertainties
CBCS pauses monetary policy easing
Willemstad/Philipsburg – The Centrale Bank van Curaçao en Sint Maarten (CBCS) decided to pause monetary policy easing by keeping both the pledging rate and the reserve requirement percentage unchanged. Consequently, the pledging rate will remain at 4.75% and the reserve requirement percentage at 18.50%. This decision follows a previous 0.50 percentage point reduction in both instruments in November 2024, supported by the solid and stable foreign exchange position and adequate import coverage in the monetary union. The decision to keep the pledging rate unchanged is based on increased uncertainty in global trade and financial markets and the decision by the Federal Reserve (Fed) to maintain its policy rate so far this year. “Although domestic economic and monetary indicators are moving in line with expectations, downside risks to the outlook have increased, especially due to heightened risks associated with an intensification of protectionist trade policies. Therefore, the CBCS remains cautious and will continue to closely monitor domestic and international economic developments, particularly the key monetary policy indicators within the union, and adjust its policy as needed”, stated executive director, Dr. José Jardim.