Botswana’s central bank has maintained the country’s bank rate at 5 percent.
Addressing media on Tuesday, the Bank of Botswana governor Moses Pelaelo said the decision is attributed to current state of the economy and the outlook for both domestic and external economic activities.
He said economic trends suggest that the prevailing monetary policy stance is consistent with maintaining inflation within the objective range of 3 to 6 percent in the medium term.
“Consequently, the Monetary Policy Committee decided to retain the bank rate at five percent,” said Pelaelo.
The governor further said growth is projected to improve in the short to medium term, driven largely by performance in the services sectors and recovery in mining activity, adding that the development is in line with positive global economic prospects.
In addition, the projected accommodative monetary conditions in the domestic economy and increase in government expenditure are expected to support growth of economic activity in the non-mining sectors. Enditem
