Interest rates remaining unchanged

Tuesday, January 20, 2015

The Bank of Botswana’s monetary policy committee is unlikely to cut interest rates when it meets at the end of the month despite inflation falling to the lowest rate in 42 years, analysts believe.

The December headline inflation fell to 3.8 percent last week, providing scope for further lowering of interest under the central bank accommodative monetary policy stance.

However, analysts believe the recent inflation rate fall is primarily pushed by the temporary drop in fuel prices, and does not signify any easing of underlying inflationary pressures.

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