GABORONE, Botswana – In a widely anticipated move, the Central Bank of Botswana has opted to maintain its key interest rate at 1.90%, the same level it has been since the previous assessment. The announcement came on February 20, 2025, as policymakers took into consideration the current economic environment and prospects for inflation and growth.
The decision to hold rates steady reflects a balance between supporting economic recovery and guarding against inflationary pressures. While the southern African nation grapples with global economic challenges, including fluctuating commodity prices and changing demand dynamics in key trading partner countries, the stable interest rate is indicative of a cautiously optimistic outlook for the domestic economy.
Central bank officials noted that their decision aligns with efforts to encourage private sector investment and consumer spending, crucial drivers of economic activity in Botswana. With inflation contained within target ranges, the continued accommodative monetary policy is expected to support business and consumer confidence as the country navigates the complexities of both regional and global economic landscapes.
