BoB cuts rate to spur weak credit growth

BoB governor Linah Mohohlo
BoB governor Linah Mohohlo

The Bank of Botswana (BoB) yesterday cut the benchmark bank rate by 0.5 percentage points to 6 percent, to spur the flagging economy through higher credit growth.

With credit growth currently at a four-year low due, in part, to tight liquidity in the market, a Monetary Policy Committee (MPC) meeting held yesterday decided to reduce the cost of borrowing to drive spending by both businesses and households.

“The current state of the economy as well as the domestic and external economic outlook, including the inflation forecast, suggest that easing monetary policy is a step in the right direction; it would be consistent with maintaining inflation within the Bank’s medium-term objective range of 3 – 6 percent.

Editor's Comment
A step in the right direction

That is indeed a welcome development, especially looking at the fact that the manual way of doing things is slowly disappearing and competency in the use of computers and other digital gadgets has become a must.The simple way of looking at it is just an example that almost all companies have gone completely digital and school leavers will be better placed after leaving school, because they will already be familiar with the use of computers.The...

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