The Central Bank of Eswatini (CBE), acting with its Monetary Policy Consultative Committee, left the discount rate unchanged at 6.75 % on 27 March 2026 and asked banks to keep the prime lending rate at 10.25 %, judging that a “cautious approach” remains warranted as inflation pressures ease but upside risks persist. The stance extends a stable policy path that has prevailed since a 25 bp cut in May 2025. Headline consumer inflation slipped to 1.9 % y/y in February from 2.1 % in January, and the Bank has trimmed its 2026 inflation forecast to 3.33 % (from 3.97 %) and 2027 to 3.48 %; GDP accelerated to 5.8 % y/y in Q3 2025, while private-sector credit fell 1.4 % m/m in January yet rose 5.3 % y/y as the NPL ratio improved to 6.0 %. Gross official reserves were E11.2 bn on 20 March, covering 2.6 months of imports, and public debt reached E38.8 bn (40.4 % of GDP). The Bank noted subdued global growth, lingering above-target inflation in some advanced economies, and stable policy rates among major central banks; regionally, South Africa’s economy cooled and the SARB held its repo at 6.75 %. The CBE pledged to keep monitoring international and domestic conditions and to respond prudently to safeguard price and financial stability.
Central Bank of Eswatini 2026-03-27
CBE keeps discount rate steady at 6.75%
Central Bank of Eswatini held the discount rate at 6.75 % and told banks to keep the prime lending rate at 10.25 %, extending the unchanged stance since May 2025 amid easing yet still uncertain inflation. February CPI slowed to 1.9 % y/y and the Bank cut its 2026 inflation forecast to 3.33 %, pledging continued vigilance to protect price and financial stability.