Mbabane – The Central Bank of Eswatini (CBE) has kept the discount rate unchanged at 6.75%, meaning banks are expected to retain the prime lending rate at 10.25% for individuals and businesses.
The decision comes as headline inflation eased to 2.6 per cent in June 2026, down from 2.7% in May.
The CBE announced the decision in its Monetary Policy Statement released on Friday, stating that the lower inflation rate and improved economic activity had been considered in assessing the country’s monetary conditions.
The unchanged discount rate means borrowers are not expected to face an increase in the cost of loans before the next monetary policy meeting, provided commercial banks maintain the current prime lending rate.
The Bank also revised down its inflation forecast for 2026 to 3.0% from the previous forecast of 3.31 per cent issued in May.
According to the CBE, the cost of goods and services is expected to increase moderately during the year.
The latest economic data also showed continued growth in economic activity. Eswatini’s real Gross Domestic Product (GDP) grew by 6.1% year-on-year in the first quarter of 2026 on a seasonally adjusted basis.
This was an improvement from a revised growth rate of 5.8% recorded in the fourth quarter of 2025.
The decision to maintain the discount rate comes against a backdrop of easing inflation and improved economic growth, with the CBE continuing to monitor developments that could affect price stability and economic activity.
The discount rate is the rate at which the CBE lends to commercial banks and is one of the key tools used to influence borrowing costs in the economy.
Changes in the discount rate generally affect the prime lending rates charged by commercial banks, influencing the cost of loans for households and businesses.
Discussion about this post