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2025.12.0410:47:19UTC+00Botswana Maintains Policy Rate at 3.5%

The Central Bank of Botswana maintained its benchmark interest rate at 3.5% during its December 4, 2025 meeting, aiming to bolster domestic economic activity. This decision follows a substantial 160-basis-point increase in October, designed to narrow the discrepancy between the central bank's rate and commercial lending rates. The economy continues to be impacted by declining diamond exports, leading to reduced foreign currency inflows, tightened liquidity, and consequential increases in bank lending rates. In October 2025, Botswana's annual inflation rate accelerated for the third consecutive month, reaching a 3.9%, the highest in over a year, up from 3.7% in September. However, it remains within the central bank's target range of 3% to 6%.

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