BoB sticks to inflation-fighting plan

Inflation fighters: Members of the BoB’s management at last week’s media briefing PIC: MBONGENI MGUNI
Inflation fighters: Members of the BoB’s management at last week’s media briefing PIC: MBONGENI MGUNI

The Bank of Botswana (BoB) says it is far from “helpless” and will eventually get prices under control, as criticism rises after a series of interest rate hikes failed to cool expectations of higher inflation among local businesses.

The BoB kicked off the three interest rate hikes it has made this year in April, saying while inflation is being driven by external costs rather than local demand, the rate actions were required to ensure that expectations of higher inflation do not become entrenched in the local economy.

The threat of inflation expectations becoming entrenched in the economy is associated with firms pricing their views of future inflation into their products and services, property owners doing the same with their rental reviews, workers with their wage demands and so on, which self-actualises into higher real inflation.

Editor's Comment
Are police trigger-happy?

Unfortunately, that day turned sour for those who were shopping at Sefalana Cash and Carry in Gaborone West Industrial.The exchange of fire that ensued between members of the Botswana Police Service (BPS) and robbers who had allegedly robbed a G4S cash-in-transit vehicle left two civilians dead, three robbers struck down, and an undisclosed number of citizens wounded.One deceased civilian is reportedly an employee of the Citizen Entrepreneurial...

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