Botswana raises interest rates to 15.5%

by Richard Kilner

Story link: Botswana raises interest rates to 15.5%

Yesterday the Monetary Policy Committee of the Bank of Botswana chose to increase the Bank Rate by 50 basis points.

The rate now stands at 15.5%.

Inflationary pressures has caused the bank’s 3-6% inflation target to be missed, with a rising trend evident since late last year.

The Bank of Botswana forecasts inflation will continue to rise until early next year, when it will begin to decline, and cites worldwide rises in oil and food prices as the main cause of its recent increasing pattern.

To stave off future rises, the bank is tightening monetary policy, and has stated its aim is to rein in inflation without causing a detrimental impact on sustainable economic growth.