Inflation Quickens To 7% On Rental Increases

This happens after inflation had reached the upper limit of the Bank of Botswana's (BoB) medium-term inflation target of 6.0 percent in July 2009. The biggest increase was in the Housing, Water, and Electricity, Gas & other Fuels group, which moved up 1.6 percent. All other groups registered growth of less than 1.0 percent. 

Botswana's central bank has forecast consumer inflation to stabilise inside its 3 to 6 percent target range in the medium-term and cut its main lending rate by 50 basis points to 11.0 percent in August, citing an improved inflation outlook and a weak economy.  The latest increase means that at its next sitting, the Monetary Committee might keep interest rates unchanged as the outlook for inflation remain unstable.