BoB cuts interest rates to record low

Pelaelo says inflation is expected to remain low in the medium term
Pelaelo says inflation is expected to remain low in the medium term

The Bank of Botswana (BoB) yesterday cut the main bank rate by 50 basis points to five percent, the lowest in recorded history, in a move that lowers interest costs for new borrowers and cuts repayments for certain existing borrowers.

The rate cut was the first since August 2016.

BoB governor, Moses Pelaelo explained that benign forecasts for both local and external inflation as well as a need to support economic activity, had motivated the rate cut.

Editor's Comment
Batswana need to do better to stop FMD

It is a clear signal that the government’s purse is empty and that our own behaviour has left veterinary officials fighting with one hand tied behind their backs. We have been here before. During COVID-19, many of us thought we knew better. We ignored simple rules, we carried on as if the danger was someone else’s problem, and the virus took lives and left our economy on its knees. We are still broke from that experience. Yet now, with FMD...

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