The Central Bank of Seychelles (CBS) held its Monetary Policy Rate at 1.75% for the second quarter of 2026, maintaining an accommodative stance as domestic prices are projected to rise amid higher oil, freight and shipping costs, while the Middle East conflict creates uncertainty for tourism. Across the provided decisions since the third quarter of 2025, the rate has remained at 1.75%. The Standing Deposit Facility and Standing Credit Facility rates will remain at 0.25% and 3.25%, respectively, while the Minimum Reserve Requirement on applicable rupee-denominated deposits stays at 10%. Year-on-year and 12-month average inflation were both 0.3% in February, while tourism continued to support the economy despite March travel disruptions. Foreign exchange supply growth outpaced demand, contributing to rupee appreciation against the USD, although rising import costs could increase currency demand and weaken the rupee. Globally, the conflict has disrupted aviation and shipping, sharply raised oil prices and increased prospective food and transport costs. CBS will monitor external developments and their pass-through to domestic prices and stands ready to use foreign currency reserves to support orderly foreign exchange market functioning and essential imports if needed.
2026-03-27Central Bank of Seychelles
Central Bank of Seychelles Holds Monetary Policy Rate at 1.75%
The Central Bank of Seychelles held its Monetary Policy Rate at 1.75% for the second quarter of 2026, with deposit and credit facility rates at 0.25% and 3.25% and the Minimum Reserve Requirement at 10%. It cited inflation risks from higher oil, freight and shipping costs and uncertainty for tourism from the Middle East conflict, and stands ready to use foreign currency reserves to support orderly markets and essential imports.