The Central Bank of Seychelles (CBS) held its accommodative Monetary Policy Rate (MPR) at 1.75% for the third quarter of 2026, citing expectations of rising domestic prices amid Middle East-related commodity and transport-cost pressures, while tourism continued to support the economy. The MPR has remained at this level since at least the fourth quarter of 2025. 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 will stay at 10%. Year-on-year and 12-month average inflation were both 0.3% in May, with prices expected to rise gradually over the coming months, while visitor arrivals were 14% lower than a year earlier as flight disruptions affected tourism. Foreign currency supply and demand increased and generated a year-to-date net inflow, but stronger demand coincided with depreciation of the Seychelles rupee against major traded currencies. Globally, the Middle East conflict has raised oil, food, freight and shipping costs and prompted major central banks to maintain cautious policy stances. CBS will continue monitoring domestic and external developments and their impact on the Seychelles economy.
2026-06-25Central Bank of Seychelles
Central Bank of Seychelles Holds Monetary Policy Rate at 1.75%
The Central Bank of Seychelles held its accommodative Monetary Policy Rate at 1.75% for the third quarter of 2026 amid expected domestic price pressures from higher commodity and transport costs linked to the Middle East conflict. The Standing Deposit Facility, Standing Credit Facility and Minimum Reserve Requirement remain at 0.25%, 3.25% and 10%, respectively.