The Bank of Botswana's Money Policy Committee (MPC) has maintained the Monetary Policy Rate (MPR) at 1.9% despite an increase in inflation between September and October.
According to Cornelius Dekop, governor of the central bank, headline inflation increased from 1.5% in September to 1.6% in October. Despite the increase, inflation is still below the bank's short and medium range of 3-6%. In 2024, inflation is expected to average 2.9%, 3.3% in 2025 and 4.9% in 2026.
"As previously observed, the economy is expected to continue to operate below full capacity. This will reduce demand-driven inflationary pressures in the medium term," Dekop said.
Furthermore, Botswana's economy is expected to contract throughout 2024 and moderately recover in 2025.