Africa-Press – Eswatini. The Central Bank of Eswatini (CBE) has kept its discount rate unchanged at 6.75 per cent, signalling a stable monetary policy stance as inflation remains low and the economy demonstrates signs of robust recovery.
This was announced in the Bank’s latest Monetary Policy Statement released on 21 November 2025.
The decision to maintain the current rate means that commercial banks are expected to keep the prime lending rate at 10.25 per cent, ensuring that borrowing costs for households and businesses remain steady until the next Monetary Policy Consultative Committee (MPCC) meeting.
According to the CBE, headline inflation rose marginally to 2.9 per cent in October 2025, up from 2.8 per cent in September. Despite the slight increase, inflation continues to remain well within comfortable levels, allowing the Bank room to support economic growth while maintaining price stability.
The Bank noted that its inflation forecast for 2025 has been marginally revised downwards to 3.20 per cent, compared to the 3.24 per cent predicted in September. This downward adjustment reflects expectations of only moderate price increases for goods and services in the year ahead, which is good news for consumers managing household budgets.
On the economic front, Eswatini recorded a strong rebound in real Gross Domestic Product (GDP) in the second quarter of 2025. The economy grew by 3.4 per cent year-on-year, seasonally adjusted, recovering from a revised contraction of 1.0 per cent in the first quarter. The CBE described this turnaround as an encouraging sign of resilience, reflecting improved performance across key sectors.
The statement suggests that the Bank remains cautiously optimistic about the outlook. With inflation staying contained and economic activity strengthening, the current monetary policy stance is aimed at supporting continued recovery while safeguarding long-term stability.
Financial analysts say the stable interest rate will aid both consumers and businesses, particularly ahead of the festive season when spending typically increases. The maintained lending rate is expected to help businesses plan with greater certainty and offer households some relief from rising global costs.
The CBE emphasised that it continues to monitor domestic and global developments carefully, especially factors such as international commodity prices, exchange rate movements, and regional monetary policy trends, all of which have the potential to influence Eswatini’s economic environment.
The Bank concluded by reaffirming its commitment to ensuring monetary and financial stability to support sustainable economic growth.
For those interested in a deeper analysis, the full Monetary Policy Statement can be downloaded from the CBE website.
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