Monday, August 1, 2011

Botswana Central Bank Holds Rate at 9.50%

The Bank of Botswana's Monetary Policy Committee kept the benchmark interest rate steady at 9.50%.  The Bank said: "The current state of the economy and the assumptions on both the domestic and external economic outlook, as well as the inflation forecast, suggest that maintaining the prevailing level of interest rates is consistent with the achievement of the Bank's 3 – 6 percent inflation objective in the medium term."

Previously the Bank also maintained the bank rate unchanged at 9.50% during its April meeting, the Bank last dropped the rate 50 basis points to 9.50% in December last year.  Botswana recorded inflation of 7.9% in June, compared to 8.3% in May, and 8.2% in April, and above the central bank's target range of 3-6%, according to the central bank.  On inflation the Bank said: "Low demand and the forecast modest external inflationary pressures contribute to the positive inflation outlook in the medium term,"


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