The Bank of Botswana kept its Bank Rate at 5.5% on June 18, 2026, after a 200 basis point increase in the prior meeting, leaving borrowing costs at their highest since September 2017. Policymakers have opted for a wait-and-see stance as they assess the effects of earlier monetary tightening on inflation trends, especially in light of the recent US-Iran agreement to end their conflict and reopen the Strait of Hormuz. The latest CPI data revealed that Botswana’s inflation rate surged to 10.7% in May, marking the highest level since December 2022, driven primarily by a sharp rise in energy prices, while the core inflation rate reached 5.9%, the highest since July 2023.