The Central Bank of Botswana left its benchmark interest rate steady at a record low of 3.75% during its August 2021 meeting to continue supporting the domestic economy, while risks to the inflation outlook are assessed to be skewed to the upside. Policymakers noted that the annual headline inflation rate hit an over nine-year high of 8.9%, remaining above the upper bound of the Bank’s medium-term objective range of 3-6%, mainly due to the upward adjustment in domestic fuel prices. However, inflation is projected to revert to within the objective range in the second quarter of 2022, mainly on account of the dissipating impact of the recent upward adjustment in value-added tax (VAT) and administered prices from the inflation calculation. Meanwhile, it is projected that the economy will operate below full capacity in the short to medium term and, therefore, not creating any inflationary pressures, going forward. source: Bank of Botswana
Interest Rate in Botswana averaged 8.71 percent from 2006 until 2021, reaching an all time high of 15.50 percent in June of 2008 and a record low of 3.75 percent in October of 2020. This page provides - Botswana Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Botswana Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on October of 2021.
Interest Rate in Botswana is expected to be 3.75 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. In the long-term, the Botswana Interest Rate is projected to trend around 3.25 percent in 2022 and 2.50 percent in 2023, according to our econometric models.