BoB! Stop raising rates and focus on fuel costs
Friday, September 09, 2022 | 1010 Views |
Testing times: The Bank of Botswana has raised interest rates three times this year but inflation continues to rise PIC: MORERI SEJAKGOMO
At that time, we had seen the BoB raise its Monetary Policy Rate by 50 basis points (0.5%) in order to try to slow down inflation in the economy.
In that article, I had written about how following textbook economics, this move could be argued as correct but if you looked at the type of inflation being experienced and the current poor economic situation where the average Motswana is struggling, this might not have been the best move.
Batswana who marched peacefully for 'Justice for Tshepi' demanded answers. They have now received a detailed account of police investigation and a promise that the file is with the Directorate of Public Prosecutions (DPP). The real test is whether the state now keeps its word without further prodding. In his address, the minister asked the nation to trust the process. He spoke of rigour, not neglect, and pointed to 10 months of...