Botswana - Taux d'intérêt

The Central Bank of Botswana kept its benchmark interest rate unchanged at 4.75% on October 31st 2019, after a 25 bps cut in the previous meeting, to support growth in a context of low inflation. The headline inflation edged up to a seven-month high of 3% in September from 2.9 percent in the prior month but is projected to revert to within the objective range (3-6%) in the second quarter of 2020. Policymakers also noted that growth slowed in Q2 mainly due to mining but mentioned government projections which indicate that domestic economic activity will likely expand by 4.3% and 4.6% in 2019 and 2020, respectively, helped by government spending.

The Central Bank of Botswana slashed its benchmark interest rate by 25 bps to 4.75% on August 29th 2019. It was the first rate cut since October 2017, to the lowest level since at least 2006, in a bid to foster growth. Policymakers said that inflation outlook remains positive amid subdued domestic demand pressures and modest rise in foreign prices. Headline inflation rose to a four-month high of 2.9% in July 2019 from 2.8% in June, below but closer to the lower bound of the bank's target range (3-6%); and it is projected to revert within the target in Q1 2020. On the other hand, the economy is projected to operate close to, but below full capacity in the short to medium term; the GDP is expected to rise by 4.2% and 4.8% in 2019 and 2020, respectively.

The Central Bank of Botswana kept its benchmark interest rate unchanged at 5% on June 27th 2019, saying that the inflation outlook remains positive amid subdued domestic demand pressures and modest rise in foreign prices. Policymakers noted that inflation was below the lower bound of the target range of 3-6% in April (2.5%) and May 2019 (2.6%), mainly reflecting base effects associated with the increase in public transport fares and electricity tariffs in the second quarter of 2018. On the other hand, the economy is projected to operate close to, but below full capacity in the short to medium term; the GDP growth is expected to ease to 4.2% in 2019 from 4.5% in 2018.

The Central Bank of Botswana left its benchmark interest rate unchanged at 5 percent at its April 24th meeting. The annual inflation rate stood at 3.3 percent in March, unchanged from the previous month and close to the lower bound of the medium-term objective range (3-6 percent). Regarding growth, the economy expanded 4.5 percent in 2018 from 2.9 percent in 2017, as mining output recovered sharply helped by diamonds (7.4 percent vs -11.1 percent).

The Central Bank of Botswana left its benchmark interest rate unchanged at 5 percent on its February 26th 2019 meeting, saying that inflation is expected to remain low and stable in the medium term. Policymakers noted that inflation was close to the lower bound of the medium-term objective range (3-6 percent) for most of 2018, reaching 3.5 percent in December and it is projected to increase slightly in the short term. Regarding growth, the economy expanded 4.2 percent year-on-year in Q3 2018 from 5.2 percent in Q2, mainly boosted by non-mining activities which rose 5 percent while mining fell 2.7 percent. For 2019, the bank projects the GDP to expand 4.2 percent.