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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
Let's show compassion to baby Asli

Her story is heartbreaking not only because she is fighting for her life at such a tender age, but because her parents have spent months navigating a medical journey filled with uncertainty, delays, and rising fear.What began as something that seemed as simple as jaundice has escalated into a life-threatening condition that now requires an urgent liver transplant.For Asli’s parents, the reality is devastating. They are not asking for luxuries...

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