ANTICIPATION BUILDS AHEAD OF MPPC MEETING ON JAN 31

MBABANE - All eyes will be on the Central Bank of Eswatini (CBE) on January 31, 2025, when the Monetary Policy Consultative Committee (MPCC) convenes to deliberate on the country’s next monetary policy stance. The meeting, scheduled as the first of the year, comes amid mounting concerns over inflation, sluggish economic growth and global economic uncertainty. It will be closely monitored by stakeholders across the economy, including businesses, consumers and financial analysts. Economic analysts predict that the committee’s decision will largely hinge on inflation trends, which have seen mixed results in recent months. The meeting will be chaired by the CBE Governor, Dr Phil Mnisi, who has always emphasised the need for prudent policy decisions to maintain macroeconomic stability. In a recent statement, he reiterated the central bank’s commitment to fostering sustainable growth and price stability.

Performance

As the date approaches, speculation continues over whether the MPPC will opt to hike, cut or hold the discount rate. Regardless of the decision, it is expected to set the tone for Eswatini’s economic performance in 2025. For ordinary emaSwati, the outcome of the MPPC meeting could affect everything from loan repayments to the cost of essential goods. The citizens hope that the central bank will be mindful of how its decision impacts those already struggling with high food and transport costs. Last week, market watchers acknowledged that there was a lot of uncertainty regarding US President-elect Donald Trumps policies with foreign countries, but the economists remained confident of a 25 basis points interest rate cut in South Africa later this month.

Neil Roets, CEO of Debt Rescue SA, said the question of whether Trump’s presidency could influence South Africa’s interest rate decisions was a valid one, given the interconnected nature of global economies. “While the South African Reserve Bank (SARB) bases its decisions on local economic conditions and global factors, including the policies of major economies like the US, can’t be ignored,” he said.

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