Swazi Observer

FULL STORY

GOVERNOR CLARIFIES INFLUENCE OF MONETARY POLICY DECISIONS

By Nokunceda Magagula | 2025-04-05

The Central Bank of Eswatini (CBE) Govenor Dr Phil Mnisi has addressed the prevalent misconception that the bank merely follows the monetary decisions of South Africa.

Speaking during a media engagement yesterday, Dr Mnisi emphasised that CBE's monetary policy decisions were independently formulated and were based on thorough internal discussions and data analysis, rather than external influences.

He explained that prior to monetary policy meetings, an extensive internal dialogue occurs among key experts, including the Directors of research, financial markets, and operations.

Also Read: BUS FARE TO HIKE AS 40 CENTS LEVY KICKS IN

This consultative process ensures that the CBE considers a wide range of economic data, which informs their decisions.
The governor stated that there was an intense internal conversation, not even looking at what South Africa would be saying.

The CBE employs a structured approach to analyse various economic indicators.
They utilise a barometer that assesses potential movements in the economy, helping to guide the direction of monetary policy.

This data-driven analysis is crucial in determining the potential impacts on liquidity and overall economic growth within Eswatini.
While the CBE operates independently, it also acknowledges the importance of understanding the economic decisions of its trading partners.

“The CBE does not operate in isolation. This perspective ensures that the implications of external economic conditions are factored into local monetary policy decisions, ultimately benefiting the economic landscape of Eswatini,” he said.
The monetary policy decisions taken by the governor are made in consultation with the Monetary Policy Consultative Committee, which includes the deputy governor, the director of research, and the director of financial markets.
a
Additionally, the committee comprises five independent members, appointed by the minister of finance, who serve for five years. Their inclusion is intended to ensure that decisions were made without conflicts of interest, reinforcing the integrity of the monetary policy process.

share story