BoB! Stop raising rates and focus on fuel costs

Testing times: The Bank of Botswana has raised interest rates three times this year but inflation continues to rise PIC: MORERI SEJAKGOMO
Testing times: The Bank of Botswana has raised interest rates three times this year but inflation continues to rise PIC: MORERI SEJAKGOMO

In the Mmegi edition of June 24, 2022, I wrote about how the Bank of Botswana (BoB) and the Ministry of Finance and Economic Development (MoF) needed to think outside the box about how to fight rampant inflation.

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.

Editor's Comment
Keep your mask close

Wearing of masks behind closed doors has been mandatory following the government’s August decision that the public was freed from masking in outdoor spaces.According to a press statement from the ministry, all other remaining COVID-19 protocols such as social distancing in schools and requirements for vaccination or PCR tests at ports of entry have also been relaxed.Statistics still show that hundreds still die daily due to the pandemic around...

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