The Central Bank of Botswana raised its benchmark interest rate by 160 bps to 3.5% during its regular meeting held on October 30, 2025. This marked the first rate hike since June 2022, bringing borrowing costs to their highest since March 2022, amid signs of stronger inflationary pressures. The annual inflation rate in Botswana accelerated for the second month to 3.7% in September 2025, the highest since August 2024, from 1.4% in the previous month.