On 29 October 2026 the Monetary Policy Committee held the monetary policy rate at 5.5%, in line with forecasts. It was the third consecutive hold after the June and August meetings, following the 200-basis-point increase on 30 April.
September inflation of 7.8% is still above the 6% ceiling of the Bank’s objective range, and the Bank has not yet treated inflation as under control. Holding lets the April tightening keep working through to prices.
The next data point is October inflation, due from Statistics Botswana on 13 November 2026. A further fall toward 6% would support continued holding into 2027; a rebound would keep further tightening on the table.
The IMF’s October World Economic Outlook expects Botswana inflation to average 7.2% in 2026 and 7.4% in 2027, which suggests rates stay higher for longer.
What this means for you
- Do not budget for rate cuts in the first half of 2027.
- Fixed-rate refinancing may be worth pricing now for long-dated facilities.
- Review discount rates in impairment tests and IAS 19 valuations at the December year-end.
If any of these points apply to your organisation, talk to us. We will tell you what needs to change and what it will take.
Bank of Botswana: Monetary Policy Committee decision, 29 October 2026
Bank of Botswana: MPC decision, 27 August 2026
Published 29 October 2026. This article is general information, not advice for a specific situation.