What does the Central Bank's monetary policy actually mean? |17 July 2026

What does the Central Bank's monetary policy actually mean?

Compiled by Sunny Esparon

On a quarterly basis, the Central Bank of Seychelles (CBS) announces its latest monetary policy decision. The headlines often state that the Bank has decided to tighten, loosen or maintain its current monetary policy stance. Usually this leads to Governor Caroline Abel discussing inflation forecasts, liquidity conditions and interest rates, but for many Seychellois these announcements can appear disconnected from everyday life. Yet monetary policy quietly influences almost every household and business in the country. It affects how much people pay to borrow money, how attractive it is to save, how easily businesses can access financing and, ultimately, how stable prices remain. In simple terms, monetary policy is one of the Central Bank's most important tools for ensuring that the economy remains healthy and sustainable over the long term.

To continue reading, please click here to subscribe to Seychelles NATION’s e copy