Botswana holds interest rate at 3.5% as inflation risks rise

• Botswana keeps benchmark rate at 3.5%
• Inflation risks rise amid fragile growth

GABORONE, BOTSWANA – Botswana’s central bank left its benchmark interest rate unchanged at 3.5%, as inflation edges higher and economic growth remains subdued.

The decision, announced at the end of the Bank of Botswana’s first Monetary Policy Committee (MPC) meeting of the year, extends a pause that began in December, following a cumulative 160 basis point hike in October from 1.9% to 3.5%. The October increase marked the first rate rise since June 2022.