BoB upbeat on 2018 economic prospects

On Tuesday, BoB governor, Moses Pelaelo announced that the key bank rate would be maintained at five percent, based on subdued domestic demand pressures and low upward threats to inflation. The accommodative monetary policy position supports economic activity particularly in the non-mining sector.

Government expects 2018 growth to reach 5.3%, higher than the World Bank’s forecast of 4.7%. Last year, the economy grew by 2.4%, down from government’s forecast of 4.7%, a drop economists have said was due to the closure of BCL and Tati Nickel mines.