Botswana cuts interest rates 50bps

The Central Bank of Botswana has reduced interest rates by half a percent from 15.5 to 15 percent.

Although inflation remains above the bank’s medium-term objective range of 3 – 6 percent and the country has price stability is projected there is a chance that the impact of the increase in the alcohol levy would outweigh the effect of the recent decrease in fuel prices. It is therefore possible to see a temporary rise in inflation at the same time as a monetary easing.