The Central Bank of Seychelles (CBS) kept its monetary policy rate (MPR) steady for the fourth quarter, saying the economy has not yet fully recovered from the effects of the COVID-19 pandemic despite a pick-up in economic activity.

The central bank of Seychelles, the archipelago in the Indian Ocean, shifted its interest rate corridor to downwards to lower market interest rates and support the ailing economy, with the result the monetary policy rate was cut for the fourth time since September 2019.

Fitch Ratings has downgraded Seychelles' Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'B' from 'B+', with a Stable Outlook.

The Central Bank of Seychelles (CBS) cut its monetary policy rate (MPR) by 100 basis points to 4.00 percent, saying this is the first phase of its response to the challenge from the spread of the coronavirus, which is expected to slash this year's earnings from tourism by 70 percent and trigger a double-digit drop in economic growth.