Botswana holds main interest rate for fourth meeting in a row

By Brian Benza

GABORONE, April 17 (Reuters) - Botswana's central bank held its main lending rate at 1.90% on Thursday, citing balanced risks to the inflation outlook despite global economic uncertainty sparked by U.S. tariffs slapped on most countries.

The Bank of Botswana maintained its monetary policy rate BWRATE=ECI for the fourth meeting in a row, after a hold decision in February, December and November.

Inflation in the Southern African country edged up to 2.8% year-on-year in March BWCPIY=ECI from 2.7% a month earlier.

Central bank Governor Cornelius Dekop told a press conference that the bank expected inflation to remain low in the medium term, averaging 2.5% this year and 4.9% in 2026.

The bank had forecast inflation averaging 3.9% in 2025 and 5.0% the following year at its last meeting in February. It prefers inflation between 3% and 6% in the medium term.

U.S. President Donald Trump's tariffs have rocked financial markets and sparked fears of a global recession.

Dekop warned that U.S. "reciprocal tariffs" could be inflationary and that Botswana's inflation rate might rise on higher global commodity prices.