SA�s downgrade effects to spillover into Botswana

Briefing the media on Wednesday, Bank of Botswana   deputy governor, Kealeboga Masalila said the effects of SA’s credit rating downgrading are such that higher interest rates, difficulty in raising funding and macroeconomic instability in that country might directly impact on Botswana’s inflation, export competitiveness and SACU revenues.

“The downdragging is likely to push up the cost of products in South Africa and this will be transferred to Botswana resulting in higher imported inflation.