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.
Whilst celebrating milestones in inclusivity, with notably P5 billion awarded to vulnerable groups, the report sounds a 'siren' on a dangerous and growing trend: the ballooning use of micro-procurement. That this method, designed for small-scale, efficient purchases, now accounts for a staggering 25% (P8 billion) of total procurement value is not a sign of agility, but a 'red flag'. The PPRA’s warning is unequivocal and must be...