Botswana Holds Interest Rate at Lowest Since at Least 2007

(Bloomberg) -- Botswana’s central bank held its key interest rate at the lowest since at least 2007 as subdued demand contribute to a benign inflation outlook.

The Monetary Policy Committee kept the rate at 5 percent, Governor Moses Pelaelo told reporters Tuesday in the capital, Gaborone. It was reduced in October.

Downside risks to the outlook include restrained global activity, protectionist policies and geopolitical pressures, while upside risks include a potential increase in prices for services such as power, he said.

Botswana is a landlocked country of about 2.2 million people that’s roughly the size of Texas. It’s the world’s biggest diamond producer after Russia and has Africa’s highest credit rating at Moody’s Investors Service.

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