The Bank of Botswana maintained its monetary policy rate 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 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.
US President Donald Trump's tariffs have rocked financial markets and sparked fears of a global recession.
Dekop warned that US "reciprocal tariffs" could be inflationary and that Botswana's inflation rate might rise on higher global commodity prices.
--Reuters--