The Monetary Policy Committee (MPC) comprises senior Bank of Botswana staff and advisers, and has the responsibility for guiding monetary policy within the framework and objectives set out in the annual Monetary Policy Statement. Principally, this involves setting the policy rate (Bank Rate), but may also include review of other instruments of monetary policy. Policy is assessed in light of a systematic review of the evolving economic outlook that influences the anticipated medium-term path for inflation. Central to the Committee's deliberations is the inflation forecast.
The MPC meets approximately every two months although, if required by circumstances, additional meetings can be convened. Shortly after each meeting, the Bank issues a press release informing the public of both the Committee's decision regarding the Bank Rate and the reasons behind it.