mmegi

No interest rate cuts soon despite inflation drop

Monday, June 26, 2023 | 260 Views |

Making decisions: The central bank is responsible for monetary policy management PIC: MORERI SEJAKGOMO

The Bank of Botswana (BoB) does not envisage cutting interest rates anytime soon, despite projections of cooling inflation, with executives arguing that numerous threats to the forecasts persist.

The central bank raised interest rates three times last year, by a collective 151 basis points as it fought escalating inflation which peaked at 14-year highs in August. However, since then, inflation has been falling – largely due to lower fuel prices and base effects – and in May, dropped to a two-year low at 5.7 percent.

The BoB last week said it expects inflation to remain within the three to six percent objective range going into the medium term. The central bank had previously expected inflation to revert on a sustained basis to the objective range from the second quarter of 2024.

Already have an active account? Log in here.

Or Sign up and get unlimited access to premium articles.

St Engenas Church members. PIC MORERI SEJAKGOMO

St Engenas ZCC registration challenges drag on

Mpho Mokwape | 2d ago

Church fights Sebogodi’s mysterious fires

Ryder Gabathuse | 2d ago

To oppose or not: Ball in State's court

Goitsemodimo Kaelo | 2d ago

Kaboeamodimo fancies 'lion's den' Goodhope-Mmathethe

Innocent Selatlhwa | 2d ago

I have abused my body -Tebogo

Calistus Kolantsho | 2d ago

Boko warns Masisi against rigging of elections

Spira Tlhankane | 2d ago

Mmakgodumo festival slated for October 12

Boitumelo Khutsafalo | 2 h ago

"I don't need Botswana money, I got my own"- Steve Harvey

Larona Makhaiza | 2 h ago

Time to end informal sector fronting

The Francistown Umbrella Informal Sector chairperson, David Mbulawa, has highlighted this growing concern, revealing that many local traders are using their licences to facilitate the entry of foreign goods into the market at a fee.Fronting undermines the very fabric of our local economy. It allows foreign traders to exploit the system designed to benefit Batswana, using local licences to cross borders and sell goods at prices intended for local...

The Monitor Editor | 17 September 2024

About us

Mmegi is the leading independent source of breaking news, latest news, current
affairs, Politics, Business, Sport, debates, analysis, and entertainment news in Botswana.

Explore

More