Botswana's central bank sees annual inflation breaching the upper cap of its 3-6% target in the second quarter of this year, driven by recent tax increases and coronavirus-related supply side constraints, its governor said on Thursday.
29 April 2021, 7:00 PM | Reuters | @SABCNews
Image: ReutersTax hikes are seen as pushing companies to pass on increased costs to consumers in the form of higher prices.
Botswana’s central bank sees annual inflation breaching the upper cap of its 3-6% target in the second quarter of 2021, driven by recent tax increases and COVID19-related supply side constraints, its governor said on Thursday.
Inflation dropped below 1% last year as the COVID-19 pandemic depressed economic activity but has been on the rise in the last few months, increasing to 3.2% in March, the first time it was within the objective range since September 2019.
“Due to supply-side factors related to the coronavirus pandemic as well as the upward adjustments in taxes and administered prices we see inflation breaching the 6% upper bound before it falls back within the range in the first quarter of 2022,” Mos
RENTAL ARREARS: BHC houses
As Botswana Housing Corporation (BHC) officially introduced new prices for its units this week, they did so on the backdrop of being owed P27 million in rental arrears.
As of 1st April, BHC tenants saw a hike in their rentals as the Corporation enforced an increase for the first time in 16 years.
Confirming they are owed millions, speaking to Voice Money this week, BHC Head of Marketing and Communication, Gomolemo Zimona revealed that as of the end of February the figure stood at a whopping P27 million.
However, he refused to go into detail on the debt.
Botswana: Economy projected to grow by 8 8% this year african-markets.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from african-markets.com Daily Mail and Mail on Sunday newspapers.
HOPEFUL: Moses Pelaelo
Bank of Botswana Governor, Moses Pelaelo, says the central bank forecasts the domestic economy to grow by 8.8 percent this year.
Speaking during the launch of the Monetary Policy Statement of Tuesday, the governor said the improvement, which is largely a reversal of the stated contraction of 7.7 percent in 2020, is premised on conducive financing conditions associated with accommodative monetary policy and a sound financial environment.
“In addition, the mid-term review of the National Development Plan 11, supported by effective implementation of the Economic Recovery and Transformation Plan, provides added impetus for positive economic prospects,” said Pelaelo.
Last year, Botswana’s output contracted by 6.4 percent in the twelve months to September 2020, compared to an increase of 3.7 percent in the year to September 2019.