At its meeting today, the Monetary Policy Committee (MPC) of the Bank of Botswana decided to reduce the Bank Rate by 0.5 percentage points to 11 percent. Domestic inflation fell further in July and has reached the top end of the Bank’s inflation objective range of 3 – 6 percent. While some fluctuations are expected in the short term, inflation is expected to stabilise within the objective range over the medium term time frame that is relevant for monetary policy. While there are some upside risks from arising international oil prices and possible increases in domestic prices, these are balanced by subdued domestic economic growth. However, the Bank remains committed to responding appropriately to all economic and financial developments so as to maintain price stability in the medium term, which contributes to sustainable economic growth. For more details see press release.
A detailed review of economic developments and the medium term inflation outlook will be contained in the Mid-Term Review of the 2009 Monetary Policy Statement, which will be available on this website shortly.