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Mid-Term Review of the 2012 Monetary Policy Statement published

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The Bank of Botswana has published the Mid-Term Review of the 2012 Monetary Policy Statement.  Domestically, subdued fiscal stimulus, sluggish income growth and below-trend performance of the economy will constrain demand pressures on inflation. External price pressures are expected to remain generally benign in the context of restrained world economic activity, modest commodity price inflation (although there is a renewed risk pertaining to rising food prices) and the dampening impact of low levels of capacity utilisation, high rates of unemployment and well-anchored inflation expectations in major economies. Against this background, it is expected that inflation will be close to the upper end of the 3 – 6 percent objective range by the end of 2012.

 









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