High inflation to last longer than forecast

Pain in the pocket: The price of cooking oil has risen by nearly 30 percent in the last 12 months PIC PHATSIMO KAPENG
Pain in the pocket: The price of cooking oil has risen by nearly 30 percent in the last 12 months PIC PHATSIMO KAPENG

The Bank of Botswana (BoB) now expects inflation to drop to the three to six percent target range by the third quarter of next year, a revision from the original forecast that this would happen in the second quarter of 2022.

The central bank made the adjustment earlier today when announcing that the bank rate would be maintained at 3.75 percent. The bank rate is the benchmark rate for all interest rates in the market and any adjustment affects both borrowers and depositors.

Inflation has been trending at nine-year highs since June, peaking at 8.9 percent in July, then settling at 8.8 percent in October. The higher inflation has been driven by increases in Value Added Tax and other administered prices this year.

Editor's Comment
Congratulations Anicia Gaothuse!

The contest had 10 beautiful young girls as finalists and unfortunately only one could wear the crown.The judges picked Anicia Gaothuse. To all those who feel their contestant should have won ahead of Anicia for whatever reason, hardly; the judges found Anicia to be the best among the best, so desist from disrespecting our newly crowned queen on social media or anywhere else, for that matter! Each of the 10 beautiful young women had supporters...

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