Botswana First in Africa to Hike Rates Since War as Inflation Seen Soaring.

The article focuses on Botswana's central bank becoming the first in Africa to raise interest rates in response to a global energy shock triggered by the Iran war, which has caused inflation to more than double. The monetary policy committee increased the key rate from 3.5% to 5.5%, anticipating inflation to peak at 8.9% in April due to rising fuel prices, transport fares, and medical premiums. The conflict has disrupted global oil and fertilizer supplies via the Strait of Hormuz, exacerbating inflationary pressures in Botswana, which is also facing economic challenges from a downturn in the diamond industry and a foot-and-mouth disease outbreak affecting beef exports. The central bank projects inflation to average 8.7% in 2026 before declining in 2027. [Extracted from the article]