Botswana's inflation outlook positive: monetary body

Botswana's Monetary Policy Committee responsible for guiding monetary policy on Wednesday concluded a positive outlook to keep inflation rate within objective, said the central bank of Botswana Bank of Botswana in a statement.

The committee comprising senior central bank staff and advisers forecasted the inflation rate of Botswana will remain within medium-term objective range between 3 percent to 6 percent.

Botswana's inflation increased from 2.8 percent in March to 3.1 percent in April 2015, following the upward adjustment in electricity and water tariffs.

The statement said modest domestic demand pressures and benign foreign price developments contribute to the positive inflation outlook in the medium term, which is subject to downside risks associated with weak global economic activity and subdued commodity prices.

While the committee indicated the shortfall in regional food production presents an upside risk to inflation. Furthermore, the inflation outlook could be adversely affected by any unanticipated increase beyond the current forecasts for administered prices, government levies and international oil prices.

The committee also decided to maintain the Bank Rate at 6.5 percent.

Botswana's Monetary Policy Committee meets approximately every two months, after which it issues a press release informing the public of both the committee's decision regarding the Bank Rate and the reasons behind it. Endi