ECCB 2023-2024 Annual Report

Eastern Caribbean Central Bank Notes to the Financial Statements For the year ended 31 March 2024 (expressed in Eastern Caribbean dollars)

3. Financial risk management (continued) c) Market risk (continued) i) Interest rate risk (continued) Sensitivity to interest rate movements The following table indicates the sensitivity to a reasonable possible change in interest rates, with all other variables held constant, on profit or loss and other components of equity. The sensitivity of the profit or loss is the effect of the assumed changes in interest rates on net income based on the variable rate non-trading financial assets and financial liabilities. The sensitivity of other comprehensive income is calculated by revaluing fixed rate FVOCI financial assets for the effects of the assumed changes in interest rates.

2024

Impact on profit

Impact on other components of equity

$

$

Interest rates - increase by 100 basis points Interest rates - decrease by 50 basis points

7,121,242 (3,560,621)

(23,295,945) 11,647,973

2023

Impact on profit

Impact on other components of equity

$

$

Interest rates - increase by 100 basis points Interest rates - decrease by 50 basis points

13,463,131 (6,731,566)

(52,920,750) 26,460,375

65