The Central Bank of Botswana held its benchmark interest rate steady at 5 percent on December 4th 2018. Policymakers said that the decision is consistent with keeping the inflation rate within the medium term target range (3-6 percent). The Committee noted that the annual inflation rate rose to 3.6 percent in October from 2.9 percent in September, the highest inflation rate since January 2015, mainly due to higher cost of transport and it is projected to increase slightly in the short term. The economy grew by 4.4 percent in twelve months to June and it is expected to improve in the short to medium term boosted by the services sectors and a recovery in mining and it is anticipated that it will operate close to its full capacity in the medium term. Interest Rate in Botswana averaged 9.59 percent from 2006 until 2018, reaching an all time high of 15.50 percent in June of 2008 and a record low of 5 percent in October of 2017.
Interest Rate in Botswana is expected to be 5.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Botswana to stand at 4.75 in 12 months time. In the long-term, the Botswana Interest Rate is projected to trend around 4.75 percent in 2020, according to our econometric models.