BY MBONGENI NDLELA
MBABANE- The Central Bank of Eswatini (CBE) has maintained a cautiously accommodative monetary policy stance as the country navigates a volatile global economic environment shaped by geopolitical tensions, rising commodity prices and slower global growth.
Presenting the 2026 Governor’s Annual Monetary Policy Statement, Central Bank Governor Dr. Phil Mnisi said the Bank reduced the discount rate by 25 basis points from 7.0 per cent to 6.75 per cent in May 2025, where it has remained up to April 2026. The decision was aimed at supporting domestic economic activity while inflationary pressures remained relatively contained.
“In pursuit of its mandate of formulating and implementing sound monetary policy to ensure price and financial stability, the Bank pursued an accommodative monetary policy stance in 2025,” said Dr. Mnisi.
The Governor explained that the decision was influenced by easing global and regional monetary policy conditions, lower domestic inflation outcomes and an improved inflation outlook.
According to the report, Eswatini’s inflation environment remained generally favourable during the review period despite growing uncertainty caused by the ongoing conflict in the Middle East. However, the Central Bank warned that the situation could still place upward pressure on prices through higher fuel costs, electricity tariffs and imported inflation.
“In the short to medium term, the outlook for monetary policy remains highly uncertain, largely due to the recent outbreak of the conflict in the Middle East, which is already disrupting global supply chains and contributing to elevated global inflationary pressures,” the report stated.
The report demonstrates the Central Bank’s commitment to protecting economic stability while supporting sustainable growth despite rising international economic headwinds.
(Courtesy Pic)
