BoB Says Inflation Should Slow Down By 2009

BoB Governor, Lihah Mohohlo, said last Thursday when launching the Mid-Term Review of the 2008 Monetary Statement that "all things being equal", inflation is expected to reach 3 to 6 percent, which has been eluding the bank for sometime now. The June Consumer Prime Index (CPI) data from the Central Statistics Office (CSO) shows inflation at 14.5 percent, which has prompted the central bank to use inflation targeting to limit the amount of cash in circulation.

Already, several times this year, central banks - including BoB - have used interest rates to fight inflation although the method is becoming questionable.