Botswana: BOB Holds Inflation Outlook Above Target Range
The Bank of Botswana reports that inflation has eased to 9.4% but remains above the target range due to high fuel and electricity costs. The central bank expects inflation to remain elevated until early 2027, citing supply-side pressures and global economic risks.
Why it matters
Monetary policy decisions in Botswana are critical for managing cost-of-living pressures and maintaining economic stability in the region.
Gaborone - Bank of Botswana says headline inflation has eased to 9.4 per cent in July 2026, down from 10.7 per cent in June, though it remains above the central bank's medium-term objective range of three to six percent. Delivering the Monetary Policy Committee (MPC) statement recently, the bank's governor, Mr Lesego Moseki attributed the decline primarily to the downward adjustment of domestic fuel prices on July 7, which shaved 2.3 percentage points off headline inflation.
Mr Moseki said despite the July drop, the MPC expected inflation to stay above the target range until the first quarter of 2027 due to persistent supply-side pressures, including high fuel costs and elevated electricity tariffs.
He added that projections indicated that inflation would average 7.9 per cent in 2026 before easing into the target range at an average of 4.9 per cent in 2027.
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