BoB expects low inflation to persist for two years or longer

In its October Monetary Policy Report released on Monday, the central bank projected that factors such as modest trading partner inflation, the relative strength of the pula against the rand as well as benign oil and food inflation, would keep inflation under check in coming months. The BoB has a three to six percent medium term inflation target, which it supports through reviews of interest rates and open market operations.

One major factor keeping inflation prospects low is the restrained growth in domestic economic activity, which has an impact across the board.