Botswana Holds Interest Rate at Lowest Since at Least 2007

Botswana’s central bank held its key interest rate at the lowest since at least 2007 as subdued demand contributes to a benign inflation outlook.

The Monetary Policy Committee kept the rate at 5 percent, Governor Moses Pelaelo told reporters Tuesday in the capital, Gaborone. It was reduced in October.

Downside risks to the outlook include restrained global activity, protectionist policies and geopolitical pressures, while upside risks include a potential increase in prices for services such as power, he said.

Botswana is a landlocked country of about 2.2 million people that’s roughly the size of Texas. It’s the world’s biggest diamond producer after Russia and has Africa’s highest credit rating at Moody’s Investors Service.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.