Bank of Botswana hikes rates in bid to boost transmission
Central bank admonishes lenders for ‘undermining the policy intent’
The Bank of Botswana raised its policy on April 30 while urging banks not to increase their own lending rates, as it seeks to improve the transmission of monetary policy.
The 200 basis point increase takes the main rate to 5.5%. “This policy decision is intended to strengthen policy transmission,” the central bank said. “Commercial banks are directed not to increase their prime lending rates.”
Banks offer loans at a spread above their published PLRs. The Bank of Botswana warned in 2025 that PLRs
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