The Central Bank of Botswana left its benchmark interest rate steady at a record low of 3.75% during its June 2021 meeting, where it has been since its meeting in October. The decision aims to continue supporting the economy, while risks to the inflation outlook are assessed to be skewed to the upside. The real GDP shrank by 7.9% in 2020, as Covid-19 restrictions hit both the mining and non-mining sectors; but the economy is estimated to have performed better in Q1 2021, amid the gradual easing of Covid-19 restrictions and vaccine rollouts. Meanwhile, the headline inflation rate climbed to an over 8-year high of 6.2% in May 2021, breaching the upper bound of the Bank’s medium-term target range of 3-6% for the first time since June 2013. Policymakers noted that the increase in inflation in May mainly reflects second-round effects of the recent upward adjustments in administered prices; but it is projected to revert to within the objective range in Q2 2022. source: Bank of Botswana
Interest Rate in Botswana averaged 8.76 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 July 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. Looking forward, we estimate Interest Rate in Botswana to stand at 3.75 in 12 months time. 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.