Macroeconomic Forecast Botswana

November 2007 | Macroeconomic Forecasts

Our central forecast scenario remains unchanged. Inflation, which is being driven by exogenous pressures on import prices is still the only worrisome cloud on the horizon. The rise in the CPI index came in at 7.3% y-o-y in October slightly above September's 6.8% y-o-y outcome. The central bank's Monetary Policy Committee met in late October and held the policy interest rate at 14.5% (the last change was a 50bp reduction in June 2007). The problem is structural and driven by the very open nature of the economy, but the authorities manage the situation as best as could reasonably be expected.

If you would like to subscribe to Southern Africa Monitor and gain instant access to this article, please click here to subscribe.

If you would like to take a trial to Southern Africa Monitor please click on the trial link below.