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Message: [QUOTE="Queen, post: 87408, member: 27"] A frozen policy rate signals that Botswana's central bank is playing it safe while the diamond industry keeps dragging the whole economy down. Bank of Botswana holds rates at 3.5% [LIST] [*]Governor Lesego Moseki's MPC kept the Monetary Policy Rate parked at 3.5% on 26 February. [*]Standing Deposit and Credit Facility rates stayed locked at 2.5% and 4.5%. [*]Commercial banks got told not to hike their prime lending rates. [*]Some lenders quietly widened margins anyway, and the Bank is pushing back. [/LIST] Inflation is behaving, but risks loom [LIST] [*]Headline inflation nudged up to 4.1% in January 2026 from 3.9% in December. [*]That figure still sits comfortably inside the 3%-6% target band. [*]Forecasts peg it at 4.5% for 2026 and 4.7% for 2027. [*]Electricity tariff hikes and a foot-and-mouth outbreak could spike prices. [/LIST] The diamond slump is absolutely wrecking the economy [LIST] [*]Diamonds generate roughly a third of government revenue and most forex earnings. [*]Lab-grown competition and weak global demand keep crushing the market. [*]Debswana has piled up stockpiles with zero plans to ramp up production. [*]The economy is projected to contract by 0.4% in 2025 because of it. [/LIST] Recovery hopes rest on non-mining sectors [LIST] [*]A tiny 0.1% GDP bump through September 2025 came from tourism, finance, and services. [*]The Ministry of Finance is projecting a 3.1% rebound for 2026. [*]Around 70% of Botswana remains unexplored for critical minerals. [*]U.S. partnership interest in new mining ventures could open fresh revenue streams. [/LIST] What steady rates mean for regular people [LIST] [*]Borrowing costs for home loans and car finance stay predictable for families. [*]Stable inflation keeps everyday purchasing power from eroding too fast. [*]Savers get stuck with low deposit returns as the trade-off. [*]The next MPC decision drops on 30 April 2026. [/LIST] [/QUOTE]

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