What is an interest rate?
Monetary policy is the process by which the Central Bank of Solomon Islands controls the supply of money, the availability of money, and the cost of money — or interest rate — in order to attain a set of objectives oriented towards the growth and stability of the economy.
Deposit Rate
The interest rate a bank pays you on money you deposit or save with them. In Solomon Islands, savings accounts currently carry no interest, while term deposits earn a small return.
Lending Rate
The interest rate a bank charges you when you borrow money, such as a personal loan or business loan.
How interest rates are set block
The factors which influence money supply and interest rates include the issue of notes and coins by the Central Bank, variations in government cash holdings and deposits, changes in loans and advances to government, changes in foreign exchange reserves, variations in the statutory cash reserve requirement and liquid assets ratio, changes in the Central Bank's discount rate, and adjustments in commercial banks' desired level of excess reserves.
- Deposit Rate: 0.50% (December 2025)
- Lending Rate: 8.78% (December 2025)
- Money Supply: SBD $7,041m (6 May 2026)
- Inflation: 4.2% (March 2026)
What interest rates mean for borrowers
Before entering into a loan contract, financial institutions must fully disclose the effective interest rate, the annual percentage rate, the terms and conditions, and the manner in which interest is calculated — including the effect on the interest rate if the loan is paid off early. Customers must also be informed of any potential additional costs such as insurance fees, valuation fees, and solicitor's fees, as well as any penalties for non-payment.
What interest rates mean for savers
Savings accounts in Solomon Islands do not carry any interest. For short-term and immediate savings, Solomon Post also provides Ezi-Pei where you can save by cashing in to your Ezi-Pei wallet and use it to pay bills or make person-to-person transfers when the need arises.
Term deposits are usually for a fixed term and carry a small interest. For people with large amounts of cash, term deposits are a good way of saving for a medium term and also earning an interest on their savings.
How CBSI monitors interest rates
Each financial institution is required to submit to CBSI, within 30 calendar days of any variation, information on all banking products and services with applicable interest rates, fees and other charges. A financial institution which fails to comply with these requirements will be considered as following unsound and unsafe practices under the Financial Institutions Act 1998, and CBSI may pursue corrective measures including issuing an order to cease and desist or replacing management of the institution.
