off-the-wire

Botswana central bank holds monetary policy rate steady

Kitco Media
By Reuters
Published:
Updated:
Reuters

GABORONE, Feb 23 (Reuters) - Botswana's central bank kept its monetary policy rate (BWRATE=ECI) unchanged at 2.65% on Thursday, saying it expected inflation to fall this year and next.

Botswana's consumer inflation (BWCPIY=ECI) dropped to 9.3% year on year in January from 12.4% in December, but it is still far above the central bank's 3%-6% preferred band.

"It is projected that inflation will trend downwards in Botswana and revert to within the objective range of 3%-6% in the second quarter of 2024," said Bank of Botswana Governor Moses Pelaelo, attributing the predicted fall to an expected reduction in domestic fuel prices and international commodity prices.

Botswana's economy is expected to grow 4% in 2023, down from 6.7% in 2022, he told a news conference.

Reporting by Brian Benza; Writing by Nellie Peyton and Anait Miridzhanian; Editing by Alexander Winning
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