BoB bullish about inflation target despite surge
source: Sunday Standard
by The Telegraph Reporter
Central Bank said on Friday the medium term outlook for inflation is positive as it left the Ban Rate steady despite numbers going up for the past two months. This is also in line with expectation from the market.
With this positive outlook, Bank of Botswana left the benchmark rates at 10 percent.
“It is, therefore, expected that inflation will fall within the 3 – 6 percent objective range in the second half of 2011. It is further projected that, following contraction in 2009, the domestic economy will grow at a moderate rate in the short to medium term, with below trend output,” the Bank said.
There were worries in the last two months as Value Added Tax (VAT) increase of 2 percent and electricity tariffs that went up 30 percent led to an [continue reading]