In line with the rise in interest rates in the international financial markets
CBCS increases the pledging rate
Willemstad/Philipsburg - The Centrale Bank van Curaçao en Sint Maarten (CBCS) decided to tighten its monetary policy stance further by raising the pledging rate by 25 basis points to 5.75%. This decision was taken in response to the increase of the Fed funds rate in July and a possible further increase in September. Even though gross official reserves and the import coverage have increased in the first eight months of this year, they are still expected to decline towards the end of 2023. The decline will be, however, less pronounced than in 2022. Therefore, the Monetary Policy Committee (MPC) of the CBCS will continue to monitor the economic and monetary developments in the monetary union closely and adjust the monetary policy stance if necessary.