The Central Bank of Eswatini (CBE) kept the discount rate unchanged at 6.75% in its 24 July 2026 statement, citing global, regional and domestic conditions under its price and financial stability mandate as it revised down its 2026 inflation forecast to 3.0% and noted stronger domestic growth; the decision extends an unchanged stance since the 25 bp cut in May 2025 from 7.0%. Banks are expected to maintain the prime lending rate at 10.25% until the next monetary policy meeting. Headline inflation eased to 2.6% in June 2026, with the lower near-term outlook reflecting continued moderation in food inflation and oil prices, although the CBE said medium-term forecasts were revised up and risks remain elevated because of oil market challenges. Real GDP grew 6.1% year on year on a seasonally adjusted basis in the first quarter of 2026, supported by a rebound in the secondary sector, while private sector credit continued to expand and the non-performing loan ratio edged down to 6.9% in May. Reserves stood at E11.8 billion as of 17 July, equivalent to 2.6 months of import cover. The CBE said it will continue to monitor international, regional and domestic developments influencing inflation and act appropriately.
Central Bank of Eswatini2026-07-24
Central Bank of Eswatini Holds Discount Rate at 6.75%
The Central Bank of Eswatini kept its discount rate unchanged at 6.75% on 24 July 2026, extending the stance in place since the 25 basis point cut in May 2025, as it lowered its 2026 inflation forecast to 3.0% and cited stronger domestic growth. It said banks are expected to maintain the prime lending rate at 10.25% until the next monetary policy meeting, with June headline inflation at 2.6%, first-quarter real GDP growth at 6.1% year on year, and reserves at SZL 11.8 billion or 2.6 months of import cover.