25 February 2024
Botswana’s central bank kept its main interest rate unchanged at 2.40% in a decision announced on Thursday, and lowered its average inflation forecast for this year.
The country’s economy is expected to operate below full capacity in the short term and therefore not generate demand-driven inflationary pressures, said Bank of Botswana Governor Cornelius Dekop.
Inflation is seen averaging 4% in 2024, he told a press conference, lower than the 4.9% forecast for 2024 given in December because of lower expected inflation in Botswana’s trading partners, weaker international commodity prices and a stronger local currency against the South African rand.
The bank lowered its policy rate to 2.40% at its last monetary policy meeting in December. Before that, the Monetary Policy Rate, based on a seven-day instrument, had been at 2.65% for more than a year.
Inflation increased in January to 3.9% year-on-year, from 3.5% in December. February inflation was also expected to be 3.9%, said Dekop.
Source: https://www.reuters.com/world/africa/botswana-central-bank-holds-monetary-policy-rate-2024-02-22/
