Botswana’s policy will spur economic growth, says central bank

Botswana’s central bank said it will stick to its accommodative monetary policy to help support economic growth that’s set to slow because of power shortages.

The economy of the world’s biggest producer of diamonds will probably expand 5.1% this year, Kealeboga Masalila, the head of monetary and financial stability at the Bank of Botswana, told reporters on Monday in the capital, Gaborone. The economy grew 5.9% last year.

“Electricity and water challenges will hinder growth,” Masalila said. “Diamond production and an accommodative monetary stance will help to support economic activity via interest-rate adjustments.”

The central bank has kept its benchmark interest rate unchanged since lowering it by half a percentage point to 7.5% in December. Inflation in the landlocked nation north of South Africa will probably remain inside the 3% to 6% target band in the medium term, Masalila said.

Botswana’s currency, the pula, is pegged to a basket of currencies that includes South Africa’s rand. Masalila said the rand appears to have “stabilised” against major currencies. – Bloomberg

We make it make sense

If this story helped you navigate your world, subscribe to the M&G today for just R30 for the first three months

Subscribers get access to all our best journalism, subscriber-only newsletters, events and a weekly cryptic crossword.”

Related stories

WELCOME TO YOUR M&G

Already a subscriber? Sign in here

Advertising

Latest stories

Is the US supreme court bent on doing harm?

Two recent rulings by America’s apex court are profoundly troubling

Lights, camera, action!

Meet Kuda Jemba, the emerging film director who went from directing music videos for some of SA’s biggest stars to directing Kelly Khumalo’s upcoming reality show

War on diamonds: Toil and triumph on the rich barren...

“I’m willing to take a bullet” says Northern Cape natives who claim the land, and its diamonds, belong to them.

Shell v Wild Coast: Science, research and erring on the...

Court applicants have argued that the company should be required to conduct an environmental impact assessment, based on the best available science, which has advanced considerably since Shell’s permit to conduct seismic surveys was granted
Advertising

press releases

Loading latest Press Releases…
×