Africa-Press – Botswana. Bank of Botswana (BoB) has over the years successfully maintained low and stable inflation while safeguarding financial system stability.
This, BoB’s Director of Research and Financial Stability, Mr Innocent Molalapata explained, had preserved the purchasing power of incomes, protected savings, encouraged investment, and enhanced the international competitiveness of local producers.
Mr Molalapata, who was speaking at a public lecture held at the BA ISAGO University Convention Centre recently, said, “these efforts ultimately contribute to broader national objectives, such as sustainable economic development and overall national prosperity”.
He further explained that the bank’s monetary policy framework aimed to keep inflation within a medium-term target range of 3–6 per cent. Mr Molalapata, said BoB had adopted a ranked dual mandate, price and financial stability, as outlined in the Bank of Botswana (Amendment) Act of 2022. The primary objective, he noted, was to achieve and maintain stable domestic prices.
“What we mean is that we want prices to change at a predictable and acceptable rate,” he said.
Mr Molalapata also outlined some of the tools the bank used to implement monetary policy, which include the Monetary Policy Rate, open market operations like the auctioning of Bank of Botswana Certificates, and the issuance of one-month BoB Certificates to address structural liquidity issues and support the short end of the yield curve.
The lecture, aimed at enhancing public understanding of monetary policy decisions and their impact on the economy, was organised by the Botswana Institute of Banking and Finance (BIBF), Ba Isago University, and the Bank of BoB.
Held under the theme: The Bank of Botswana’s Dual Mandate of Ensuring Price and Financial Stability, and its Role in Fostering Stability and Growth, the event followed the BoB’s Monetary Policy Statement launch on February 19. The lecture was prompted by the Bank’s observation of a gap in public understanding and appreciation of monetary policy and its effect on financial well-being.
BA ISAGO University Acting Dean of the Faculty of Commerce, Ms Olebogeng Mokgware, highlighted importance of making monetary policy accessible to all citizens, as it directly affected everyday matters such as interest rates and inflation.
“We believe that understanding the forces shaping our economy and personal finances isn’t just for economists or bankers, but for every Motswana who wants to make informed decisions in today’s financial landscape,” she said, expressing pride in the university’s collaboration with BIBF and BoB.
The event also included a panel discussion featuring distinguished guests from the banking industry, academia, and business associations.
For More News And Analysis About Botswana Follow Africa-Press
