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
Respect public institutions Mr Pres

Leaders must uphold the rule of law and ensure justice, but Masisi’s remarks raise serious concerns on the separation of powers and the independence of the justice system.Masisi’s claim that he personally instructed authorities not to handcuff Khama, regardless of the legal circumstances, undermines the principles of justice and equality before the law.As Head of State, Masisi should respect the judicial process and avoid interfering in...

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