In his first meeting as Governor, Cornelius Dekop announced on Thursday that the Bank of Botswana would maintain its key interest rate at 2.65% for the seventh term. This decision comes in light of the forecast that inflation will align with the bank’s set target of 3%-6%.
Consumer price growth, which was driven to 3.2% from 1.2% by escalating fuel costs, is projected to climb further to 3.4%. Dekop noted several potential inflation accelerators that could impact this projection. These include skyrocketing international commodity prices, worldwide supply chain disruptions, geopolitical fragmentation, and unanticipated domestic price increases.
Despite potential inflationary pressures, Dekop outlined a steady economic growth trajectory for Botswana. The governor predicted a 3.8% increase in the country’s economy for 2023 and a further rise to 4.4% in 2024. This outlook suggests confidence in the resilience of Botswana’s economy amidst global economic uncertainties.
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