Seychelles Cuts Key Interest Rate With Economy Set to Shrink
Seychelles Cuts Key Interest Rate With Economy Set to Shrink
The Central Bank of Seychelles lowered its benchmark interest rate for the second consecutive meeting after the government said the economy will likely contract this year.
The monetary policy committee cut the rate to 3% from 4%, central bank Governor Caroline Abel told reporters in a live broadcast on state-owned Radyo Sesel. The government in April said the economy would probably shrink by 10.8% in 2020 as a result of the coronavirus fallout. That compares with an earlier growth forecast of 3.5%.
The Indian Ocean island nation of about 98,000 people relies on tourism and seafood exports for foreign-exchange revenue and employment. Businesses have been hit and jobs lost, according to Abel.
“The economy is fragile right now,” Abel said. “There is no tourism activity.”
Seychelles Slashes Key Interest Rate to 4% to Underpin Economy
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