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BoB sees risks as inflation drops from peak

Tracking trends: Pelaelo and other bank executives say numerous threats lie in the path of declining inflation PIC: MORERI SEJAKGOMO
Tracking trends: Pelaelo and other bank executives say numerous threats lie in the path of declining inflation PIC: MORERI SEJAKGOMO

The Bank of Botswana (BoB) says inflation has passed its peak but the downtrend to the three to six percent target range is fraught with major threats, BusinessWeek has learnt.

The central bank raised interest rates three times this year in response to climbing inflation, sparking outrage from ordinary Batswana.

From 14.6% in August, which represented a 14-year high, inflation has since declined to 13.1% in October, as global fuel prices have eased in recent months. Responding to BusinessWeek enquiries recently, BoB executives projected that inflation would drop to 12.4% in November, average 11.4% in the first quarter of next year, 8.8 percent in the second quarter and seven percent in the first quarter of 2024.

Editor's Comment
Consult, get buy-ins first for 6 to 6 policy, Hon Minister

While the minister is of the view that the proposal would have significant positive economic impact, the entertainment industry players believe otherwise. The issue has over the weeks become a hot potato. But what is of essence right now is that the country needs liberal ideas to move in the right direction While opening up the economy may sound quite interesting to the ear, rolling out extended trading hours through pilot programmes without...

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