Botswana central bank maintains benchmark rate at 6 percent

The central bank of Botswana has left its key lending rate unchanged at 6 percent.

According to the Monetary Policy Committee (MPC), the decision taken is achieving the central bank’s inflation and growth targets.

Inflation fell from 3.1 percent in December to 2.7 percent in January 2016.

The bank further stated that low domestic demand pressures and subdued foreign price developments contribute to the positive inflation outlook in
the medium term.

According to the government, the southern African economy is set to grow by 4.2 percent in 2016.

In 2015, the economy slowed to 1 percent due to falling diamond production, water and power shortages.