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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.

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