The Central Bank of Eswatini raised the discount rate by 25 basis points to 7.00%, effective 26 September 2026, after considering global, regional and domestic conditions and its price and financial stability mandate, even as it lowered its 2026 inflation forecast. It had held the rate at 6.75% at every decision from November 2025 through July 2026. Banks are expected to increase their prime lending rate to 10.50%. The central bank projected inflation at 2.52% in 2026, reflecting lower-than-expected recent outcomes, slower food-price increases and more favourable exchange-rate movements, but said risks remained elevated due to the Middle East impasse and a potential El Niño drought. It projected economic growth of 5.3% in 2026, while private-sector credit continued to expand year on year and the non-performing loan ratio declined. Foreign exchange reserves provided 2.6 months of import cover. Globally, activity remained subdued but resilient, while energy-driven inflation pressures intensified following Middle East oil-supply disruptions. The central bank said it would continue monitoring international, regional and domestic developments and act appropriately to foster price and financial stability.
2026-09-25Central Bank of Eswatini
Central Bank of Eswatini Raises Discount Rate by 25 Basis Points to 7.00%
The Central Bank of Eswatini raised the discount rate by 25 basis points to 7.00%, effective 26 September 2026, with banks expected to increase the prime lending rate to 10.50%. It lowered its 2026 inflation forecast to 2.52% but cited elevated risks from Middle East tensions and a potential El Niño drought.