The Central Bank of Seychelles maintained its accommodative monetary policy stance for the fourth quarter of 2026, keeping the monetary policy rate at 1.75%. The Standing Deposit Facility and Standing Credit Facility rates remain at 0.25% and 3.25%, respectively, while the minimum reserve requirement on applicable rupee-denominated deposits stays at 10%. The decision balances a tourism-led recovery against rising import-driven inflation and geopolitical uncertainty. Tourist arrivals recovered in July and August following earlier flight disruptions, but arrivals through Sept. 20 were 7.8% below the corresponding 2025 level. Tourism earnings increased 5.1% to an estimated USD 801 million from January through August, supported by higher average room rates and a change in visitor composition. Foreign exchange supply remained broadly unchanged while demand rose, contributing to depreciation of the Seychelles rupee. Year-on-year inflation reached 0.9% in August, while 12-month average inflation was 0.3%. The central bank expects inflation to rise gradually over the near to medium term as elevated oil, food, freight and shipping costs pass through to domestic prices, potentially amplified by further currency weakness.
Central Bank of Seychelles holds monetary policy rate at 1.75% for fourth quarter of 2026
The Central Bank of Seychelles held its monetary policy rate at 1.75% for the fourth quarter of 2026 and left its standing facility rates and 10% minimum reserve requirement unchanged. Tourism earnings increased despite lower visitor arrivals, while stronger foreign exchange demand weakened the rupee. Inflation is expected to rise gradually as higher commodity and shipping costs feed into import prices.