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Botswana’s economy expected to operate below full capacity

Tuesday, December 09, 2025 | 360 Views |

FRANCISTOWN: Lesego Moseki, the new Governor of the Bank of Botswana (BoB), has said that the economy is expected to continue to operate below full capacity in the short to medium term, thereby not generating demand-driven inflationary pressures.

This forecast guided the central bank’s Monetary Policy Committee (MPC) to maintain the Monetary Policy Rate at 3.5 percent in its meeting held here last week.

Giving an update of the MPC’s deliberations, Moseki said that although inflation is expected to temporarily breach the upper bound of the three to six percent objective range, it is expected to be within the objective range in the medium term.

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