LOBAMBA: The Central Bank of Swaziland (CBS) has hiked interest rates by a further 0.5 percent as the economy continues to take a strain. The bank increased the 5.75 percent to 6.25 percent.
Citing the low levels of economic growth in the economy, with the GDP growth at 2.4 percent in 2014, falling to an estimated 1.7 percent in 2015 due to the drought which had also exacerbated upside risks to inflation, CBS Governor Majozi Sithole said the Monetary Policy Consultative Committee (MPCC) had formulated its monetary policy stance.
“Considering the international, regional and domestic economic conditions, and pursuing its price stability mandate, the bank decided to increase the bank rate by 0.5 percentage points from 5.75 percent to 6.25 percent,” reads a statement endorsed by the central bank governor.
