The Bank of Botswana (BoB), the country’s central bank, has committed to maintain sound policy despite the prevailing COVID-19 pandemic threatening the country’s economic gains.
The BoB Governor Moses Pelaelo on Tuesday said the central bank endeavors to overcome and live through the crisis without engendering long-term damage.
“It is important to, first, have the fortitude to not allow a crisis destroy hitherto a track record of prudent policy making, solid institutional frameworks and, in general, governance architecture, which could have lasting adverse effects on policy integrity, credibility and economic performance,” said Pelaelo.
He further said stakeholders in the economy need to have the foresight and agility to not waste a crisis.
Pelaelo said the bank will seize the window of opportunities engendered by the crisis to undertake structural and policy reforms, noting that the BoB is committed to ensuring that macroeconomic policies are congruent and the policy choices and responses are positive for immediate stabilisation.
Apart from COVID-19’s devastating impact on economic activity and livelihoods, Pelaelo acknowledged the pandemic could challenge the resilience and efficacy of conventional policies and lead to inadvertent disruption or destruction of otherwise good and time-tested policy frameworks and rules.
In recognition of the short-term adverse developments in the domestic economy due to the COVID-19 pandemic, and anticipated disinflationary pressures from the below-trend economic performance in the medium term, the bank has implemented several measures to avert or alleviate the prospective adverse economic fallout, said Pelaelo. “Specifically, in order to pre-empt liquidity constraints that could be engendered by the adverse impact of the COVID-19 pandemic on the economy and financial markets.” Enditem