The Central Bank of Seychelles has maintained its monetary policy rate at 1.75% for the fourth quarter of 2026, citing still-low domestic inflation and the need to support economic activity. The deposit and lending facility rates will remain at 0.25% and 3.25%, respectively, while the minimum reserve requirement will stay at 10%. Inflation is nevertheless expected to rise over the short to medium term as stronger domestic activity combines with higher global fuel, food and shipping costs linked to the conflict in the Middle East. Tourism continued to support the economy, although visitor arrivals through Sept. 20 were 7.8% lower than a year earlier. Tourism revenue increased 5.1% from January through August, driven mainly by higher average room rates and a shift toward hotel accommodation. Foreign currency demand has exceeded year-earlier levels while transaction volumes have remained broadly unchanged, contributing to depreciation of the Seychelles rupee. The central bank expects demand for foreign currency to increase with economic and festive-period activity and higher import costs, creating a risk of further currency weakness if market supply does not keep pace.
Central Bank of Seychelles holds policy rate at 1.75% for fourth quarter of 2026
The Central Bank of Seychelles held its policy rate at 1.75% for the fourth quarter of 2026, with other key rates and the 10% minimum reserve requirement unchanged. Domestic inflation remains low but is expected to rise as higher global commodity and shipping costs, stronger foreign currency demand and rupee depreciation increase price pressures.