VICTORIA, Seychelles — The Central Bank of Seychelles (CBS) has announced that it will maintain its accommodative Monetary Policy Rate (MPR) at 1.75 percent for the third quarter of 2025. The decision was revealed during a press conference held yesterday morning at the bank’s temporary office at Unity House, following a monetary policy meeting held on June 23.
First Deputy Governor of CBS Brian Commettant explained that the decision was influenced by developments both within Seychelles and in the global economy. He highlighted the increasing uncertainty internationally, which poses risks for small economies like Seychelles that are heavily reliant on global trade and tourism. ‘On the international front, there is a high level of uncertainty, as well as new concerns regarding the performance of principal economies. Taking into account Seychelles’ dependency on the external world, domestic activity will also be impacted,’ he said.
CBS noted that one of the major concerns is the rising geopolitical tensions in the Middle East, especially following the recent attack on Iran. With regard to oil and food prices, Mr Commettant noted that there was a drop in the price of oil in May for the fourth consecutive month, reaching on average US$64 per barrel, 14 percent less than the same period last year. However, prices have increased since June 14 following the attack on Iran, surpassing $73 per barrel, with the situation worsening after the US joined Israel to attack Iran. He warned that further disruptions in oil production and trade from the region could lead to significant price spikes, with worst-case estimates putting oil prices at $89 per barrel. Domestically, the economy has shown resilience mainly due to the strong performance of the tourism sector.
