Ezulwini – The Central Bank of Eswatini has kept its discount rate unchanged at 6.75 per cent, a decision that leaves borrowing costs steady for households and businesses across the country.
The move was announced on Friday, 24 July 2026, following a meeting between the Bank and the Monetary Policy Consultative Committee (MPCC), which sat to weigh the appropriate monetary policy stance. The Bank said the decision took into account global, regional and domestic economic factors, alongside its mandate to maintain price and financial stability.
With the rate held, commercial banks are expected to keep the prime lending rate on loans extended to individuals and businesses at 10.25 per cent until the next monetary policy meeting. 
Headline consumer inflation in the Kingdom slowed to 2.6 per cent in June 2026, down from 2.7 per cent in May 2026. The Bank attributed the easing to the continued moderation in food inflation and softer oil prices, and it revised its 2026 inflation outlook downward to 3.0 per cent from the 3.31 per cent it had forecast in May. Its medium term projections, however, were adjusted upward to 4.35 per cent for 2027, from 3.74 per cent, and 3.55 per cent for 2028, from 3.30 per cent. The Bank said risks to the inflation outlook remain elevated, mainly because of challenges in the oil market.
On the domestic economy, Eswatini’s real Gross Domestic Product grew by 6.1 per cent in the first quarter of 2026 on a year on year, seasonally adjusted basis, up from a revised growth rate of 5.8 per cent in the fourth quarter of 2025. The Bank said the stronger momentum was supported by a rebound in the secondary sector, while the primary and tertiary sectors also posted positive but mixed performances. On a quarter on quarter basis, economic activity expanded by 1.1 per cent (seasonally adjusted) in the first quarter, following flat growth in the previous quarter.
Credit extended to the private sector stood at E23.9 billion at the end of May 2026, reflecting month on month growth of 2.5 per cent and a year on year rise of 10.6 per cent. Credit to the households and Non Profit Institutions Serving Households sector climbed 1.9 per cent to E9.8 billion, while credit to the business sector rose 3.2 per cent to E13.2 billion. Credit extended to other sectors of the domestic economy dipped by 0.2 per cent month on month to close at E903.2 million.
The quality of banks’ loan books deteriorated mildly during the review month. Non performing loans (NPLs) rose by 1.4 per cent month on month and 7.1 per cent year on year to E1.4 billion in May 2026. Despite the higher value of NPLs, the NPL ratio eased marginally by 0.1 percentage point month on month and 0.3 percentage points year on year to 6.9 per cent, suggesting that growth in total loans continued to outpace the increase in bad loans.
As of 17 July 2026, the country’s reserves stood at E11.8 billion, equivalent to 2.6 months of import cover. Preliminary figures put total public debt at E42.1 billion, or 40.4 per cent of GDP, at the end of June 2026. This marked a month on month increase of 2.2 per cent from the E41.2 billion recorded at the end of May 2026.
Beyond the Kingdom’s borders, the Bank noted that the International Monetary Fund’s July 2026 update revised global growth for 2026 slightly lower to 3.0 per cent, from 3.1 per cent, while lifting the 2027 forecast to 3.4 per cent from 3.2 per cent. Global inflation forecasts were pushed up to 4.7 per cent for 2026 and 3.9 per cent for 2027. Monetary policy abroad remained mixed, with the U.S. Federal Reserve and the Bank of England holding rates steady, and the European Central Bank and the Bank of Japan raising theirs.
In the region, South Africa’s real GDP expanded by 0.5 per cent quarter on quarter in the first quarter of 2026, following 0.4 per cent growth in the previous quarter. South African inflation rose to 5.0 per cent in June 2026 from 4.5 per cent in May, driven largely by a sharp increase in transportation costs on the back of higher fuel prices. The South African Reserve Bank trimmed its 2026 inflation forecast to 4.0 per cent from 4.4 per cent, nudged its 2027 forecast up to 3.8 per cent, and held its repo rate at 7.0 per cent.
The Bank said it would continue to monitor international, regional and domestic developments influencing inflation and would act appropriately in line with its mission to foster price and financial stability conducive to Eswatini’s economic development.
