BoB raises Bank Rate to tackle inflation

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The Bank of Botswana (BoB) yesterday silenced its critics when it responded to rising inflation with an increase in its benchmark rates by half a percentage point or 50 basis points.

Through a spokesperson, the central bank said it was taking a proactive stance by tightening monetary policy with the objective of containing second-round effects and inflation expectations in order to sustain a low medium-term inflation path.

The 50 basis points increase means the Bank Rate has moved from 14.50 percent to 15 percent with effect from Monday this week.

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