The Bank of Botswana left its benchmark rate steady at 5.5% on October 29, 2026, extending its pause for a second consecutive meeting. Policymakers noted that risks to the inflation outlook remain tilted to the upside, mainly due to potential second-round effects from higher domestic fuel prices and electricity tariffs, as well as the under-recovery in fuel prices. Headline inflation eased to 7.8% in September from 9.3% in August, but remained above the central bank’s 3–6% target range. The MPC expects inflation to remain above the objective range because of higher cost of fuel and electricity and revert in the second quarter of 2027. Inflation forecasts were revised upwards accordingly, with average inflation projected at 8.1% in 2026 (from 7.9% previously), and 5.4% in 2027 (from 4.9%). Meanwhile, the balance of risks to growth remains tilted to the downside, amid geopolitical tensions, climate shocks, El Niño risks, and trade fragmentation. source: Bank of Botswana

The benchmark interest rate in Botswana was last recorded at 5.50 percent. Interest Rate in Botswana averaged 9.39 percent from 1976 until 2026, reaching an all time high of 15.50 percent in July of 2008 and a record low of 1.65 percent in April of 2022. 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 November of 2026.

The benchmark interest rate in Botswana was last recorded at 5.50 percent. Interest Rate in Botswana is expected to be 5.50 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 5.50 percent in 2027 and 3.50 percent in 2028, according to our econometric models.



Calendar GMT Reference Actual Previous Consensus TEForecast
2026-06-18 10:15 AM Interest Rate Decision 5.5% 5.5% 5.5%
2026-08-27 10:15 AM Interest Rate Decision 5.5% 5.5% 7.5%
2026-10-29 10:15 AM Interest Rate Decision 5.5% 5.5% 5.5%
2026-12-03 10:15 AM Interest Rate Decision 5.5%


Related Last Previous Unit Reference
Banks Balance Sheet 151462.50 154705.60 BWP Million Aug 2026
Central Bank Balance Sheet 65415.80 61345.60 BWP Million Jul 2026
Foreign Exchange Reserves 4444.00 4162.00 USD Million Jul 2026
Interest Rate 5.50 5.50 percent Oct 2026
Loans to Private Sector 31546.90 31007.09 BWP Million Aug 2026
Money Supply M1 37769.60 36359.10 BWP Million Jul 2026
Money Supply M2 128389.02 123680.95 BWP Million Jul 2026


Botswana Interest Rate
In Botswana, interest rates decisions are taken by The Bank of Botswana. The official interest rate is the Bank Rate.
Actual Previous Highest Lowest Dates Unit Frequency
5.50 5.50 15.50 1.65 1976 - 2026 percent Daily

News Stream
Bank of Botswana Keeps Policy Rate at 5.5%
The Bank of Botswana left its benchmark rate steady at 5.5% on October 29, 2026, extending its pause for a second consecutive meeting. Policymakers noted that risks to the inflation outlook remain tilted to the upside, mainly due to potential second-round effects from higher domestic fuel prices and electricity tariffs, as well as the under-recovery in fuel prices. Headline inflation eased to 7.8% in September from 9.3% in August, but remained above the central bank’s 3–6% target range. The MPC expects inflation to remain above the objective range because of higher cost of fuel and electricity and revert in the second quarter of 2027. Inflation forecasts were revised upwards accordingly, with average inflation projected at 8.1% in 2026 (from 7.9% previously), and 5.4% in 2027 (from 4.9%). Meanwhile, the balance of risks to growth remains tilted to the downside, amid geopolitical tensions, climate shocks, El Niño risks, and trade fragmentation.
2026-10-29
Botswana Leaves Monetary Policy Unchanged
The Bank of Botswana kept its benchmark rate steady at 5.5% on August 27, 2026, extending its pause in monetary policy after leaving rates unchanged in June. The decision keeps borrowing costs at their highest level since September 2017. The central bank judged that policy measures implemented so far had helped ease liquidity, improve policy transmission and stabilize the FX market. Policymakers said risks to the inflation outlook remained tilted to the upside, while the growth outlook remained exposed to downside risks. Botswana's annual inflation rate fell to 9.4% in July 2026 from 10.7% previously, but stayed persistently above the 3-6% medium-term objective range. The MPC expects inflation to remain above its target range through Q1 2027, mainly due to supply-side pressures from higher fuel prices, electricity tariffs and related cost-push effects. Inflation is projected to average 7.9% in 2026 before easing to 4.9% in 2027.
2026-08-27
Bank of Botswana Keeps Bank Rate at 5.5% in June
The Bank of Botswana kept its Bank Rate at 5.5% on June 18, 2026, after a 200 basis point increase in the prior meeting, leaving borrowing costs at their highest since September 2017. Policymakers have opted for a wait-and-see stance as they assess the effects of earlier monetary tightening on inflation trends, especially in light of the recent US-Iran agreement to end their conflict and reopen the Strait of Hormuz. The latest CPI data revealed that Botswana’s inflation rate surged to 10.7% in May, marking the highest level since December 2022, driven primarily by a sharp rise in energy prices, while the core inflation rate reached 5.9%, the highest since July 2023.
2026-06-18