Botswana has kept its key interest rate unchanged for a seventh straight time as inflation is expected to remain within its target range in the medium term.
The policy committee on Thursday left the monetary policy rate at 2.65%, Governor Cornelius Dekop told reporters in the capital, Gaborone. The meeting was his first as governor since replacing Moses Pelaelo on Oct. 21, who retired.
The policy stance was taken as “inflation will remain in the objective range in the medium term,” Dekop said. The central bank targets inflation at 3% to 6%.
Consumer price growth quickened for the first time in six months in September to 3.2% from 1.2% a month earlier on higher fuel costs. It is expected to accelerate to 3.4% this month, Dekop said.
Upside risks to the inflation outlook include “higher-than-expected international commodity prices, global supply constraints, geopolitical fragmentation and increases in local administered prices beyond current forecasts,” he said.
The economy is forecast to grow 3.8% in 2023 and 4.4% next year, Dekop said.
Source: https://www.bnnbloomberg.ca/bank-of-botswana-s-new-governor-extends-pause-in-first-meeting-1.1989873
