• 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

No free lunch as inflation bites  

patriot by patriot
June 22, 2022
in Business
0
BoB Governor Moses Pelaelo

BoB Governor Moses Pelaelo

  • Economist predicts decline in households income
  • Hard times as inflation surges to 11.9% in May
  • Fighting inflation turns into a class war BoB

BAKANG TIRO

editors@thepatriot.co.bw

RelatedPosts

Banks report P5.98 billion loan defaults

BDC Group revenue surges to P802m

Choppies gross profit hits P1.8 billion

The central bank, Bank of Botswana, has painted a gloomy picture for the economy as its now anticipates inflation to revert to normal in third quarter of 2023 and not in the first quarter of that year as they had projected before.

On Thursday, BoB Governor Moses Pelaelo warned of a worrying surge in inflation.

Pondering on the high rising cost of living amidst fears presented by rising infections of Covid-19, economist Dr Oscar Chiwira – Dean Faculty of Commerce at BAISAGO University – predict tough times.

According to Dr Chiwira, inflation surge may not be that much worrisome but income is worrying.

“What is worrisome is the basket of the general goods consumed by majority of middle and low income households whose price has increased far beyond the overall consumer index,” he said.

In addition, he said, private sector employees will feel more pinch of surging cost of living.

He said civil servants are cushioned better by the five percent salary hike they got recently.

“With the low and middle income households, those belonging to the private sector and the fixed income earners like the pensioners will be mainly affected. This emanates from lack of significant cost of living adjustments to cushion from the evils of galloping or runaway prices,” he said.

Dr Chiwira said the Pula value of stagnant income of low earners is eroding on daily basis.

BoB quandary

The central bank has once more adjusted the Monetary Policy Rate (MoPR) by 50 basis points from 1.65% to 2.15% with an anticipation of arresting inflation.

Pelaelo said inflation rose from 9.6% in April to 11.9% in May, 2022, remaining above BoB medium- term objective range of 3-6%, with the increase driven by latest adjustments on fuel prices.

“The current high level of inflation is mainly driven by supply-side factors, which contribute approximately 6.1 percentage points to the prevailing inflation (May 2022). The MPC projects that inflation will, in the short term, remain above the objective range but trend downward from the fourth quarter of 2022 and fall within the medium-term objective range of 3 – 6 percent from the third quarter of 2023. This represents a revision of the trajectory for inflation from the April forecast, influenced by subsequent increase in fuel prices and transport fares,” he said.

According to the seemingly bothered Governor, the projected decrease in inflation in the medium-term is due to dissipating impact of earlier increase in domestic administered prices.

“These risks are, however, moderated by the possibility of weaker than anticipated domestic and global economic activity due to geo-political tensions and possible periodic lockdowns and other forms of restrictions in response to the emergence of new COVID-19 variants and rising infections, with a likely further dampening the effect on economic activity,” Pelaelo highlighted.

Director of Research and Stability Department at BoB Dr Lesedi Senatla, said inflation will pick in the coming months due to increased volatility in the economy.

“We are seeing food prices going up significantly. Increase in domestic fuel prices is the main driver of inflation. However, we remain adamant that inflation will normalise,” said Dr Senatla.

According to the April 2022 World Economic Outlook (WEO), global output growth expanded by 6.1 percent in 2021, and is expected to moderate to 3.6 percent in both 2022 and 2023 respectively.

“The growth estimates for Botswana for 2022 and 2023 are 4.3 percent and 4.2 percent, respectively. South African GDP grew by 4.9 percent in 2021, and the South African Reserve Bank estimates growth of 1.7 percent and 1.9 percent in 2022 and 2023, respectively,” said Governor Pelaelo.

Despite the pressure piled by inflation, BoB says the MPC notes the growth-enhancing economic transformation reforms and supportive macroeconomic policies currently being implemented.

“These include accommodative monetary conditions, improvements in water and electricity supply, reforms to further improve the business environment and government interventions against COVID-19, including an effective vaccination rollout programme,” Pelaelo highlighted.

Previous Post

 Khama’s citizenship fears 

Next Post

Cresta properties ranked among the top 10% of hotels worldwide  

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
Cresta properties ranked among the top 10% of hotels worldwide  

Cresta properties ranked among the top 10% of hotels worldwide  

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?