Analysis by Region - Emerging Markets - Eswatini

Analysis by Region - Emerging Markets - Eswatini

According to the Central Bank of Eswatini's (CBE) July Monetary Policy Statement, the recent cost-of-living crisis is finally easing. The statement also revealed that inflationary pressures are lower than expected, which aligns with easing inflation data in South Africa. As a result, the CBE reduced the discount rate by 25bps to 7.5% in July. This widened the differential with the South African Reserve Bank (Sarb) policy rate to 75bps. It is unusual for the lilangeni's peg with the rand to result in differing interest rates, but this adjustment was supported by the recent developments in the economy.