Absa sees interest rates flat this year

Sharing insights: Markus says the lack of an interest rate cut is not all bad news
Sharing insights: Markus says the lack of an interest rate cut is not all bad news

Economists at Absa do not expect the Bank of Botswana to cut interest rates, as risks remained elevated to the upside with potential spillovers into the local economy from global uncertainties, BusinessWeek has learnt.

Interest rates represent the cost of borrowing money, expressed as a percentage of the amount borrowed. An interest rate is the phrase used to define the additional amount that a person or corporation borrowing money must return in addition to the principal.

The BoB, as the country’s central bank, determines the primary interest rates in capital markets through adjustments to the Monetary Policy Rate (MoPR), based mainly on the outlook for inflation. Last December, the central bank trimmed interest rates by 25 basis points, the first cut since April 2020.


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