The Central Bank of Botswana slashed its benchmark interest rate by 50 bps to 3.75% during its regular October 2020 meeting. The decision aims to support the economy amid the impact of the global pandemic and comes against a backdrop of low inflationary pressures. The economy plunged at a record 24% in the second quarter, mainly attributable to the adverse effects of a nationwide lockdown to curb the Covid-19 pandemic. Meanwhile, headline inflation remained steady at 1% in August and well below the lower bound of the Bank’s objective range of 3-6%. source: Bank of Botswana

Interest Rate in Botswana averaged 9.06 percent from 2006 until 2020, 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 November of 2020.

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. Looking forward, we estimate Interest Rate in Botswana to stand at 2.75 in 12 months time. In the long-term, the Botswana Interest Rate is projected to trend around 2.75 percent in 2021 and 2.50 percent in 2022, according to our econometric models.

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Botswana Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
3.75 4.25 15.50 3.75 2006 - 2020 percent Daily


Calendar GMT Actual Previous Consensus TEForecast
2020-04-30 01:10 PM 4.25% 4.75% 4.75%
2020-06-18 11:15 AM 4.25% 4.25% 4.25%
2020-08-20 10:00 AM 4.25% 4.25% 4.25%
2020-10-08 10:20 AM 3.75% 4.25% 4.25%
2020-12-03 10:00 AM 3.75% 3.75%
Go to our Calendar for more events. Or learn more about the Calendar API for direct access.


News Stream
Botswana Cuts Key Interest Rate to 3.75%
The Central Bank of Botswana slashed its benchmark interest rate by 50 bps to 3.75% during its regular September 2020 meeting. The decision aims to support the economy amid the impact of the global pandemic and comes against a backdrop of low inflationary pressures. The economy plunged at a record 24% in the second quarter, mainly attributable to the adverse effects of a nationwide lockdown to curb the Covid-19 pandemic. Meanwhile, headline inflation remained steady at 1% in August and well below the lower bound of the Bank’s objective range of 3-6%.
2020-10-08
Botswana Leaves Key Interest Rate Steady at 4.25%
The Central Bank of Botswana held its benchmark interest rate unchanged at 4.25% during its August 2020 meeting. The decision is meant to continue supporting the economy following the blow from the health crisis and associated lockdown, and comes against a backdrop of low inflationary pressures and modest demand. Headline inflation stood at a record low of 0.9 percent in July of 2020 and remaining below the lower bound of the Bank’s objective range of 3-6%, but it is projected to revert to within the objective range in the third quarter of 2021.
2020-08-20
Botswana Holds Key Interest Rate Steady at 4.25%
The Central Bank of Botswana kept its benchmark interest rate unchanged at 4.25% during its June 2020 meeting, to continue supporting the economy amid low inflationary pressures and modest domestic demand. The decision follows a 50 bps rate cut in April, as part of a number of measures to mitigate the economic impact of the coronavirus outbreak. In May, headline inflation eased 2.4%, remaining below the lower bound of the Bank's objective range of 3-6%; and it is forecast to revert to within the objective range in the third quarter of 2021. Policymakers also highlighted that the expected GDP contraction in 2020 reflects the substantial curtailment of economic activity due to the necessary measures implemented to contain the spread of Covid-19.
2020-06-18
Botswana Trims Key Interest Rate to 4.25%
The Central Bank of Botswana slashed its benchmark interest rate by 50 bps to 4.25% during its April 2020 meeting to support the economy amid the challenging economic conditions posed by the Covid-19 pandemic. The Committee also reduced the primary reserve requirements ratio for commercial banks to 2.5%, and the prudential capital adequacy ratio to 12.5% from 15%, as a way to ease liquidity conditions and increase the availability of credit.
2020-04-30

Botswana Interest Rate
In Botswana, interest rates decisions are taken by The Bank of Botswana. The official interest rate is the Bank Rate.