BoB predicts sustained inflationary pressure

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Coupled with fuel and transport fares, the effect of the recent rise in administered prices will start dissolving in the second half of next year when inflation is expected to return to the Bank of Botswana's objective.

Inflation is currently at 7.8% for July, 2.8 percentage points above BoB's upper objective of 6%.

According to the Central Bank's monetary policy mid-term review statement released this week, the recent increase in administered prices is estimated to add 1.7 percentage points to inflation in the short-term, with most of the effect dissipating in the last six months of 2012.

Editor's Comment
Women unite for progress

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