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On April 30, 2026, the Central Bank of Botswana raised its benchmark interest rate by 200 basis points to 5.5%, the highest level since 2017, after having left it unchanged at 3.5% in both February and December. Policymakers stated that the decision was intended to reinforce the effectiveness of monetary policy transmission and strengthen policy signaling amid elevated global economic uncertainty. Inflation accelerated to 4.2% in March from 4.0% in February, marking its highest level since June 2023. Although inflation remains within the bank’s 3–6% target range, it is projected to surpass the upper bound in the second quarter.
