In line with the Monetary Policy Committee’s (MPC) task to evaluate, determine, and provide transparency on the monetary policy actions of the Central Bank of Aruba (CBA), the CBA communicates the following. During its meeting on June 13, 2024, the MPC decided to reduce the reserve requirement rate from 20.5 percent to 19.5 percent as of July 1, 2024. Accordingly, commercial banks must hold a minimum balance at the CBA equal to 19.5 percent of their clients’ liquid deposits1. The decision to lower the reserve requirement rate was based mainly on the adequacy of the reserves according to the benchmarks monitored by the CBA. Furthermore, inflation was moderate, and the pace of credit growth (excluding incidentals) remained relatively flat. 

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