ECCB 2025-2026 Annual Report

Eastern Caribbean Central Bank Notes to the Financial Statements For the year ended 31 March 2026 (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 foreign debt securities measured at FVOCI for the effects of the assumed changes in market interest rates.

2026

Impact on profit

Impact on other components of equity

$

$

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

5,720,245 (2,860,123)

(23,914,373) 11,957,187

2025

Impact on profit

Impact on other components of equity

$

$

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

4,975,470 (2,487,735)

(23,954,329) 11,977,165

63