Botswana Holds Steady on Monetary Policy Amid Global Diamond Market Slump

Botswana's central bank has opted to keep its monetary policy rate unchanged at 3.5%, amid optimistic inflation projections and a sluggish global diamond market impacting the economy.

Despite January's 4.1% annual inflation rate, nestled comfortably within the central bank's 3-6% target range, Governor Lesego Moseki has outlined potential risks. These include proposed hikes in electricity tariffs and the threat of foot-and-mouth disease outbreaks pushing food inflation upward.

Looking ahead, the southern African nation anticipates a 3.1% economic growth this year, primarily driven by non-mining sectors as it seeks to diversify away from its diamond-dependent revenue streams.