By Brian Benza
GABORONE (Reuters) – Botswana’s central bank held its main lending rate at 1.90% on Thursday, citing balanced risks to the inflation outlook despite global economic uncertainty sparked by U.S. tariffs slapped on most countries.
The Bank of Botswana maintained its monetary policy rate for the fourth meeting in a row, after a hold decision in February, December and November.
Inflation in the Southern African country edged up to 2.8% year-on-year in March from 2.7% a month earlier.
Central bank Governor Cornelius Dekop told a press conference that the bank expected inflation to remain low in the medium term, averaging 2.5% this year and 4.9% in 2026.
The bank had forecast inflation averaging 3.9% in 2025 and 5.0% the following year at its last meeting in February. It prefers inflation between 3% and 6% in the medium term.
U.S. President Donald Trump’s tariffs have rocked financial markets and sparked fears of a global recession.
Dekop warned that U.S. “reciprocal tariffs” could be inflationary and that Botswana’s inflation rate might rise on higher global commodity prices.
(Reporting by Brian Benza; additional reporting by Bhargav Acharya; writing by Tannur Anders; editing by Sharon Singleton and Mark Heinrich)
