• FMD surges in SAOctober 6, 2025
    Border villages,Tlokweng on high alert Cattle crossing into SA to be slaughtered Farmers to conduct FMD routine checks   BAKANG TIRO RelatedPosts FMD surges in SA Banks report P5.98 billion loan defaults Botswana Council of Churches calls for peace… Read more: FMD surges in SA
  • Banks report P5.98 billion loan defaultsOctober 6, 2025
    Government’s growing fiscal pressures escalate risks of default in household and business loan repayments   RelatedPosts FMD surges in SA Banks report P5.98 billion loan defaults Botswana Council of Churches calls for peace STAFF WRITER editors@thepatriot.co.bw Arrears on loans… Read more: Banks report P5.98 billion loan defaults
  • Botswana Council of Churches calls for peaceOctober 6, 2025
    GORATAONE KGOSIMORE editors@thepatriot.co.bw RelatedPosts FMD surges in SA Banks report P5.98 billion loan defaults Botswana Council of Churches calls for peace   Rev. Mmachakga Moruakgomo, representing the Botswana Council of Churches, on August 2025 undertook a diplomatic visit to… Read more: Botswana Council of Churches calls for peace
  • Botswana defends slaughtering elephantsOctober 6, 2025
    Global uproar over killing 21 elephants for Independence festivities KITSO RAMONO editors@patriot.co.bw RelatedPosts FMD surges in SA Banks report P5.98 billion loan defaults Botswana Council of Churches calls for peace   The Ministry of Environment and Tourism has confirmed… Read more: Botswana defends slaughtering elephants
  • BDC Group revenue surges to P802mOctober 6, 2025
    Lines up projects worth P1.2 billion in short-term Hails Delta Automotive milestones in growing regional market To unlock growth after US$12 billion AI Mansour Holdings deal STAFF WRITER editors@thepatriot.co.bw RelatedPosts FMD surges in SA Banks report P5.98 billion loan… Read more: BDC Group revenue surges to P802m
  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders
  • Login
  • Register
Tuesday, October 7, 2025
The Patriot On Sunday
Advertisement
  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders
No Result
View All Result
Cart / $0.00

No products in the cart.

  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders
No Result
View All Result
The Patriot On Sunday
No Result
View All Result

BoB cuts rate to 4.75%

patriot by patriot
February 8, 2021
in Business
0

Bank of Botswana’s (BoB) Monetary Policy Committee (MPC) has reduced the bank rate by 25 basis points from 5 percent to 4.75 percent almost two years after the last adjustment was made.

The last bank rate adjustment was in October 2017.

RelatedPosts

Banks report P5.98 billion loan defaults

BDC Group revenue surges to P802m

Choppies gross profit hits P1.8 billion

Briefing the media on the MPC decision on Thursday, BoB Governor Moses Pelaelo said the reduction of the bank rate was spurred by the continuous stability of the inflation rate.

The inflation rate increased from 2.8 percent in June to 2.9 percent in July 2019 and was closer to the lower bound of the bank’s objective range of 3 – 6 percent.

Inflation is forecast to remain within the bank’s 3 – 6 percent objective range in the first quarter of 2020, opening an opportunity for a more robust economic activity to occur.

Pelaelo further said the subdued domestic demand pressures and the modest increase in foreign prices contribute to the positive inflation viewpoint in the medium term.

“This outlook is subject to upside risks emanating from the potential rise in administered prices and government levies and taxes, beyond current forecasts. However, modest growth in global economic activity, technological progress and productivity improvement present downside risks to the outlook,” he said.

He said the reduction will boost economic environment, citing that family and business borrowing is likely to increase as commercial banks start implementing new rate.

“In reducing interest rates, the bank recognises the favourable inflation outlook in the medium-term, which is the relevant timeframe for monetary policy and provides scope for monetary policy easing,” said Pelaelo.

Nonetheless, with inflation low and stable and inflation expectations well anchored, improving total factor productivity remains key in promoting sustainable inclusive economic growth, Pelaelo buttressed.

GDP growth bullish

In addition, Pelaelo insisted that the real GDP grew by 4.4 percent in the twelve months to March 2019, compared to a lower expansion of 3.8 percent in the corresponding period in 2018.

The growth is said to be mainly attributable to the continued good perfomance of the non-mining sectors including the recovery in mining output that expanded by 5.3 percent.

Non-mining GDP recorded a 4.3 percent growth in the year to March 2019, the same growth rate as in the corresponding period in the year prior. GDP is anticipated to increase by 4.2 percent and 4.8 percent in 2019 and 2020 respectively.

Some of the underlying factors on domestic economic perfomance include amongst others sound financial environment that facilitate policy transmission, intermediation and risk mitigation.

Global economy sluggish

Global output growth is expected to ease to 3.2 percent in 2019 from an estimated expansion of 3.6 percent in 2018, with expected moderation in global growth various factors such as the trade conflict between China and United States of America (USA).

Director of Research and Stability at BOB, Dr Alex Kganetsano, said the USA/China trade tension has affected many economies in the globe, including Botswana. He said the tension is indirectly affecting Botswana as the country exports its diamonds to both markets which might lead to reduction in quantity of Botswana’s exported goods.

Tags: BoB
Previous Post

BPC’s NWGTC project 73% complete

Next Post

On the couch with William Surmon

Related Posts

Banks report P5.98 billion loan defaults
Business

Banks report P5.98 billion loan defaults

October 6, 2025
BDC Group revenue surges to P802m
Business

BDC Group revenue surges to P802m

October 6, 2025
Choppies gross profit hits P1.8 billion
Business

Choppies gross profit hits P1.8 billion

October 2, 2025
Tataki mine opens
Business

Tataki mine opens

September 22, 2025
Banks in P90.79 billion household debt
Business

Banks in P90.79 billion household debt

September 13, 2025
𝐇𝐞𝐦𝐩 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 d𝐞𝐚𝐥s roll in
Business

𝐇𝐞𝐦𝐩 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 d𝐞𝐚𝐥s roll in

September 13, 2025
Next Post
On the couch with William Surmon

On the couch with William Surmon

Please login to join discussion
  • FMD surges in SAOctober 6, 2025
    Border villages,Tlokweng on high alert Cattle crossing into SA to be slaughtered Farmers to conduct FMD routine checks   BAKANG TIRO RelatedPosts FMD surges in SA Banks report P5.98 billion loan defaults Botswana Council of Churches calls for peace… Read more: FMD surges in SA
  • Banks report P5.98 billion loan defaultsOctober 6, 2025
    Government’s growing fiscal pressures escalate risks of default in household and business loan repayments   RelatedPosts FMD surges in SA Banks report P5.98 billion loan defaults Botswana Council of Churches calls for peace STAFF WRITER editors@thepatriot.co.bw Arrears on loans… Read more: Banks report P5.98 billion loan defaults
  • Botswana Council of Churches calls for peaceOctober 6, 2025
    GORATAONE KGOSIMORE editors@thepatriot.co.bw RelatedPosts FMD surges in SA Banks report P5.98 billion loan defaults Botswana Council of Churches calls for peace   Rev. Mmachakga Moruakgomo, representing the Botswana Council of Churches, on August 2025 undertook a diplomatic visit to… Read more: Botswana Council of Churches calls for peace
  • Botswana defends slaughtering elephantsOctober 6, 2025
    Global uproar over killing 21 elephants for Independence festivities KITSO RAMONO editors@patriot.co.bw RelatedPosts FMD surges in SA Banks report P5.98 billion loan defaults Botswana Council of Churches calls for peace   The Ministry of Environment and Tourism has confirmed… Read more: Botswana defends slaughtering elephants
  • BDC Group revenue surges to P802mOctober 6, 2025
    Lines up projects worth P1.2 billion in short-term Hails Delta Automotive milestones in growing regional market To unlock growth after US$12 billion AI Mansour Holdings deal STAFF WRITER editors@thepatriot.co.bw RelatedPosts FMD surges in SA Banks report P5.98 billion loan… Read more: BDC Group revenue surges to P802m
The Patriot On Sunday

© 2024 Copyright The Patriot On Sunday - Inspired by Search Mart.

Navigate Site

  • About Us
  • Advertise
  • Disclaimer
  • Contact Us

Follow Us

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Login
  • Sign Up
  • Cart
  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders

© 2024 Copyright The Patriot On Sunday - Inspired by Search Mart.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?