The Central Bank of Eswatini (CBE) and its Monetary Policy Consultative Committee left the discount rate unchanged at 6.75 percent on 29 May 2026, citing a need to watch the inflation impact of the Middle-East conflict and the associated oil price shock amid weakening domestic fundamentals. After a 25 bp cut in May 2025 the rate has remained steady. Banks are expected to keep the prime lending rate at 10.25 percent until the next meeting. Headline inflation picked up to 2.0 percent in April and the CBE lifted its 2026 inflation forecast to 3.31 percent (from 3.27 percent), while real GDP growth eased to 5.7 percent y/y in Q4 2025. Private-sector credit expanded 0.9 percent m/m to E23.2 billion and the non-performing-loan ratio edged down to 6.8 percent. Foreign-exchange reserves stood at E8.8 billion, equal to 2.0 months of import cover, and public debt was 38.9 percent of GDP. Globally, the IMF cut its 2026 growth forecast to 3.1 percent and raised its inflation projection to 4.4 percent, while major central banks largely held policy rates steady. The CBE reiterated that risks to inflation remain high and pledged to continue monitoring international, regional and domestic conditions and to act appropriately to safeguard price and financial stability.
Central Bank of Eswatini2026-05-29
Central Bank of Eswatini holds discount rate at 6.75%
The Central Bank of Eswatini kept its discount rate at 6.75 % on 29 May 2026, pointing to elevated inflation risks from Middle East-driven oil shocks and softer domestic fundamentals. It raised the 2026 inflation forecast to 3.31 % from 3.27 % and signalled continued vigilance, with banks expected to maintain the 10.25 % prime lending rate.