BoB adopts neutral monetary policy

Speaking at the launch of the Monetary Policy Statement 2010 in Gaborone last week, BoB governor Linah Mohohlo said the challenge facing monetary policy is the desire to strike a balance between supporting the still fragile economic recovery and rein in potential pressures on inflation

"The outlook for inflation and output suggests a largely neutral monetary policy stance in the medium-term.Notably, inflation, which is forecast to stabilise within the objective range in the medium-term, is expected to increase in the short-term due to transitory supply side factors, while underlying inflationary pressures are projected to be low," she said.