MBABANE – The Central Bank of Eswatini (CBE) has maintained the discount rate at 6.75 percent following its monetary policy meeting with the Monetary Policy Consultative Committee on 30 January 2026. Banks are expected to keep the prime lending rate for loans to individuals and businesses at 10.25 percent until the next policy review.
Governor Dr Phil Mnisi said headline inflation slowed to 2.3 percent in December 2025, down from 2.4 percent in November, while the Bank kept its inflation forecast for 2026 at 3.97 percent. “The CBE expects the cost of goods and services to increase moderately in 2026,” Dr Mnisi noted.
Eswatini’s economy recorded strong growth in 2025, with GDP rising 5.6 percent compared to 3.0 percent in 2024. On a quarterly basis, the third quarter of 2025 saw year-on-year GDP growth of 5.8 percent, up from a revised 4.3 percent in the previous quarter. Growth was broad-based across primary, secondary, and tertiary sectors.
Credit to the private sector rose 9.8 percent year-on-year to E22.4 billion by December 2025. Business loans stood at E11.9 billion, while household and non-profit institution credit reached E9.4 billion. Non-performing loans fell 0.2 percent to E1.3 billion, improving the NPL ratio to 6.7 percent.
Eswatini’s gross official reserves were E11.9 billion as of 23 January 2026, covering 2.8 months of imports. Public debt rose to E40.2 billion by December, equivalent to 41.8 percent of GDP, up from E39.7 billion in November.
On the global front, the IMF revised its growth forecast for 2026 to 3.3 percent, with advanced economies expected to grow 1.8 percent and emerging markets 4.2 percent. Regional updates show South Africa’s economy expanded 0.5 percent in the third quarter of 2025, while inflation rose to 3.6 percent in December. The South African Reserve Bank kept its repo rate at 6.75 percent.
Dr Mnisi said the CBE will continue monitoring international, regional, and domestic developments affecting inflation and the currency peg, acting to maintain price and financial stability.
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