Botswana keeps rates steady, Rwanda hikes by 50bp
Rising inflation drives east African nation to raise bank rate to highest level since 2009
The Bank of Botswana held its key interest rate at 5.5% on August 27. On the same day, the National Bank of Rwanda raised its policy rate by 50 basis points to 8.75%.
Both banks cited the upside risks to inflation from the onset of the El Niño climate pattern, as well as continued tensions in the Middle East, as factors in their decisions.
Botswana: weak growth, high inflationThe Bank of Botswana’s decision came as a surprise to some in the markets, with Trading Economics having forecast a 200bp
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