BoB relaxes monetary policy

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The Bank of Botswana (BoB) will relax monetary policy in 2009 to complement the expansionary fiscal policy recently adopted by government in a bid to address the imminent decline in economic activity due to the global crisis.

BoB governor, Linah Mohohlo indicated on Monday that interest rates will fall in 2009 while the exchange rate regime will not be significantly shifted as part of measures to counter the unfolding challenges to Botswana's economic growth prospects.

"A decrease in inflation with unchanged interest rates would imply a tightening  of monetary policy at a time  when  there are challenges to economic  performance.

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