Interest rates rise for the first time in 14 years

BoB governor, Moses Pelaelo PIC: THALEFANG CHARLES
BoB governor, Moses Pelaelo PIC: THALEFANG CHARLES

The Bank of Botswana (BoB) this afternoon raised interest rates by 51 basis points or about half a percentage point, with officials saying the move was necessary to manage escalating inflation expectations in the economy.

The increase is the first in the country since 2008, from which point interest rates had gradually been declining to the current record low levels.

The increase, announced after a Monetary Policy Committee meeting yesterday, means any borrowers whose loans are not on a fixed rate will pay more for their repayments or new loans with immediate effect. The increase also means marginally improved rates on deposits.

Editor's Comment
Closure as pain lingers

March 28 will go down as a day that Batswana will never forget because of the accident that occurred near Mmamatlakala in Limpopo, South Africa. The tragedy affected not only the grieving families but the nation at large. Batswana throughout the process stood behind the grieving families and the governments of Botswana and South Africa need much more than a pat on the back.Last Saturday was a day when family members said their last goodbyes to...

Have a Story? Send Us a tip
arrow up