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Of Botswana’s economic philosophy and raising rates

Balancing act: BoB governor, Moses Pelaelo has to thread the line between restraining inflation and supporting the economic rebound PIC: PHATSIMO KAPENG
Balancing act: BoB governor, Moses Pelaelo has to thread the line between restraining inflation and supporting the economic rebound PIC: PHATSIMO KAPENG

On Thursday 16th June 2022, the Bank of Botswana announced a hike of its Monetary Policy Rate by 50 basis points moving from 1.65% to 2.15%.

First and foremost, what does this mean for you and me? In simple terms, it means most of your loans just got half a percent more expensive.

That is, if the loan interest rate you were being charged by your bank was 7% it will now be 7.5% meaning you will be paying more every month.

Editor's Comment
Micro-procurement maze demands urgent reform

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...

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