• Where are the ladies?October 7, 2025
    Botswana enjoys athletics success but… NANCY RAMOKHUA RelatedPosts Where are the ladies? FMD surges in SA Banks report P5.98 billion loan defaults editors@thepatriot.co.bw   Questionably for several years now, ladies in athletics have their representation visibly missing at international… Read more: Where are the ladies?
  • 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 Where are the ladies? FMD surges in SA Banks report P5.98 billion loan defaults editors@thepatriot.co.bw   Government… 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 Where are the ladies? FMD surges in SA Banks report P5.98 billion loan defaults STAFF WRITER editors@thepatriot.co.bw Arrears on loans to the household… 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 Where are the ladies? FMD surges in SA Banks report P5.98 billion loan defaults   Rev. Mmachakga Moruakgomo, representing the Botswana Council of Churches, on August 2025 undertook a diplomatic visit to Ukraine aimed at… 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 Where are the ladies? FMD surges in SA Banks report P5.98 billion loan defaults   The Ministry of Environment and Tourism has confirmed authorising the killing… Read more: Botswana defends slaughtering elephants
  • Home
  • News
  • Business
  • Lifestyle
  • Sport
  • Analysis & Opinions
  • Vacancies & Tenders
  • Login
  • Register
Saturday, October 11, 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

Inflation jumps above BoB target

patriot by patriot
June 24, 2021
in Business
0
Bank of Botswana Governor Moses Pelaelo

Bank of Botswana Governor Moses Pelaelo

Rise in administered prices worsen inflation

Inflation expected to revert to normal in 2022

RelatedPosts

Banks report P5.98 billion loan defaults

BDC Group revenue surges to P802m

Choppies gross profit hits P1.8 billion

Sluggish vaccination rollout dampens recovery

BAKANG TIRO

editors@thepatriot.co.bw

The central bank, Bank of Botswana, forecasts that inflation will grow tremendously to reach about 8.5% in the third quarter of 2021 after rising to 6.2% in May 2021.

Bank of Botswana Governor Moses Pelaelo on Thursday said it is worrisome that inflation had exceeded the 3-6% medium objective range, saying it will hamper growth.

Statistics Botswana (SB) figures on inflation indicated that the May rise was driven by higher prices of food, alcohol, transport and other commodities after adjustment of Value Added Tax (VAT). Inflation in April reached 5.6%, the highest since July 2013.

Briefing the media on Thursday, Pelaelo said the bank anticipates that inflation will rebound to 3-6% range in the second quarter of 2022 after the bank revised its forecast of rebound in Q1 2022.

“As the central bank we have a medium forecast and it determines how we respond on issues like of inflation. Every decision we make is considered very carefully and the reason for maintaining current monetary policy is to support economic recovery. It is very key to have a macroeconomic stability. So the Monetary Policy Committee Meeting maintained bank rate at 3.755,” said Pelaelo.

He said the surge in inflation in May mainly reflects second-round effects of the recent upward adjustments in administered prices and overall risks to the inflation outlook are assessed to be skewed to the upside.

“These risks include the potential for increase in the  international commodity prices beyond current forecasts; persistence of supply constraints due to the possible maintenance of travel restrictions and lockdowns and domestically based risk factors relating to second-round effects of the recent increases in administered prices that could lead to generalised higher prices,” he said.

According to BoB Governor, a slow rollout of vaccines, resulting in the continuance of weaker economic activity and the possible decline in international commodity prices could result in lower Inflation.

“Meanwhile, the adverse effects of the COVID-19 pandemic containment measures pose uncertainty and challenges to economic growth given Botswana’s vulnerability to external shocks, notably, on diamond prices and demand, tourism and delays in the importation of supplies,” he added.

However, it is estimated that the economy performed better in the first quarter of 2021 compared to the Q4 of 2020, given the gradual easing of COVID-19 movement restrictions and vaccine rollouts in Q1.

Director of Research and Financial Stability at BoB Dr Lesedi Senatla said a hike on fuel prices in the near future could be on the cards due to increases in fuel prices globally.

Dr Senatla said the bank has monetary tools that it can utilise to control surging inflation. “If inflation becomes too high, the economy can suffer; conversely, if inflation is controlled and at reasonable levels, the economy will rebound promptly. As long as the inflation is between 3-6% objective medium range we are fine with that but it if goes beyond its worrying,” he said.

Meanwhile, Pelaelo said the central bank has no information regarding the P2.6 billion that government recently secured from the World Bank to help resuscitate the economy. The World Bank loan, according to the Government, is to support the Economic Recovery and Transformation Programme (ERTP) which needs P14.5 billion to cushion against Covid-19 effects. World Bank Country Director for Eswatini, Botswana, Lesotho, Namibia and South Africa, Marie Francoise Marie-Nelly said Covid-19 placed a great burden on the country’s economy, people and firms.

Previous Post

StanChart 2020 Annual Report

Next Post

Armstrong vs Lahri in Debswana race

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
Armstrong vs Lahri in Debswana race

Armstrong vs Lahri in Debswana race

Please login to join discussion
  • Where are the ladies?October 7, 2025
    Botswana enjoys athletics success but… NANCY RAMOKHUA RelatedPosts Where are the ladies? FMD surges in SA Banks report P5.98 billion loan defaults editors@thepatriot.co.bw   Questionably for several years now, ladies in athletics have their representation visibly missing at international… Read more: Where are the ladies?
  • 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 Where are the ladies? FMD surges in SA Banks report P5.98 billion loan defaults editors@thepatriot.co.bw   Government… 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 Where are the ladies? FMD surges in SA Banks report P5.98 billion loan defaults STAFF WRITER editors@thepatriot.co.bw Arrears on loans to the household… 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 Where are the ladies? FMD surges in SA Banks report P5.98 billion loan defaults   Rev. Mmachakga Moruakgomo, representing the Botswana Council of Churches, on August 2025 undertook a diplomatic visit to Ukraine aimed at… 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 Where are the ladies? FMD surges in SA Banks report P5.98 billion loan defaults   The Ministry of Environment and Tourism has confirmed authorising the killing… Read more: Botswana defends slaughtering elephants
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?