… Deputy Governor Dr Kealeboga Masalila provided insights in response to inquiries about the Monetary Policy Committee’s stress testing results, focusing on commercial real estate (CRE) debt-servicing risks, potential defaults, and exposure to interest rate fluctuations. …
… Despite these challenges, the Monetary Policy Committee (MPC) has kept the policy rate steady at 5.5 percent, balancing the need to curb inflation with concerns about fragile economic growth and rising business expenses. …
Delivering the Monetary Policy Committee (MPC) statement recently, the bank’s governor, Mr Lesego Moseki attributed the decline primarily to the downward adjustment of domestic fuel prices on July 7, which shaved 2.3 percentage points off headline inflation. …
… At a recent Monetary Policy Committee briefing, officials from the Bank of Botswana revealed that the government collected over P4 billion from diamond royalties and dividends during this period, an increase over the same quarter last year. …
… Reflecting these pressures, the Bank of Botswana’s Monetary Policy Committee recently raised the Monetary Policy Rate by 200 basis points, from 3.5 percent to 5.5 percent. …
… Governor Lesego Moseki said the Monetary Policy Committee is concerned that lenders continue to increase effective lending rates by widening margins above Prime Lending Rates, despite guidance aimed at stabilising conditions in the credit market. …
The Bank of Botswana's stress tests confirm that commercial real estate lending risks remain stable under moderate conditions, though vulnerabilities emerge in extreme scenarios. Deputy Governor Kealeboga Masalila said risks are mitigated through banks' internal controls, regulatory oversight, and collateral such as mortgages.
The Bank of Botswana's stress tests confirm that commercial real estate lending risks remain stable under moderate conditions, though vulnerabilities emerge in extreme scenarios. Deputy Governor Kealeboga Masalila said risks are mitigated through banks' internal controls, regulatory oversight, and collateral such as mortgages.
Bank of Botswana Governor Lesego Moseki has warned that businesses and households should prepare for ongoing inflationary pressures from rising fuel and electricity costs, livestock movement restrictions, and global geopolitical tensions. The Monetary Policy Committee has kept the policy rate steady at 5.5 percent while headline inflation remains above the central bank's medium-term target range and economic expansion has been modest.
The Bank of Botswana's Monetary Policy Committee projects inflation will remain above its target range until the first quarter of 2027, driven by persistent supply-side pressures including high fuel costs and elevated electricity tariffs. The bank forecasts inflation will average 7.9 per cent in 2026 before easing to 4.9 per cent in 2027, with upside risks stemming from potential second-round effects from fuel and tariff increases, food inflation tied to Foot and Mouth Disease restrictions, and external pressures from Middle East conflict and global trade tensions.
The Bank of Botswana kept its Monetary Policy Rate at 5.5 percent despite inflation falling from 10.7 percent in June to 9.4 percent in July, which remains above the central bank's 3–6 percent medium-term target.
Botswana's diamond sales topped P9 billion in the first quarter of 2026, with the government collecting over P4 billion from diamond royalties and dividends during the period. Foreign exchange reserves currently sit at approximately P58 billion.
The World Bank Group warns that the Middle East conflict is causing the largest oil supply loss on record, with global commodity prices forecast to rise 16 percent in 2026 and energy prices expected to surge 24 percent, fueling inflation and slowing growth in import-dependent economies like Botswana.
Commercial banks are raising effective lending rates by widening margins above Prime Lending Rates, moves the Bank of Botswana's Monetary Policy Committee says dilute its recent policy signals aimed at stabilizing credit market conditions.