BoB to overhaul interest regime

Central bank governor, Moses Pelaelo announced the reforms on Wednesday, saying industry consultations would begin 'henceforth' with the reforms due to take effect in the first half of the year.

The bank rate anchors all other interest rates in the country’s financial sector, with the central bank holding six meetings each year at which it can be reviewed based on inflation expectations and the outlook for economic growth. At a level below the bank rate, the BoB also holds weekly auctions of Bank of Botswana Certificates (BoBC) which help manage bank liquidity levels and thus ensure that short-term interest rates in the market are in line with the broader bank rate that has been set.