ECCB Communications Workshop for ECCU Media Practitioners

Eastern Caribbean Central Bank

Monetary Policy by Definition & Practice cont’d • Traditional Monetary Policy Tools(s) used by central banks: I. Open Market Operations (OMO) – Purchase/Sale of Government Bonds/Treasury Bills I. Quantitative Easing II. Repos and Reverse Repos III. Term Deposit Facility IV. Securities Lending Programme II. Discount Window Lending/Discount Rate – The rate the Central Bank charges for overnight borrowing for liquidity needs by commercial banks III. Reserve Requirement – The minimum percentage of customer deposits that banks must hold in reserve rather than lend out.

Transforming The ECCU Together

3/30/2026

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