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Botswana Sept inflation eases to 6,8%
Real estate news By Reuters
16 Oct 07 - 15:18
Botswana's consumer inflation rate slowed to 6,8 percent year-on-year in September, continuing its downward move in the previous month, the Central Statistics Office said on Tuesday. Prices for food, alcohol and tobacco, clothing and footwear and most other key indices used to measure the cost of living were stable in September compared to August, when the inflation rate was 7,2 percent, the government agency said in a statement.
Botswana's central bank, which targets inflation of between 4 and 7 percent for 2007, recently said the measure would likely stay near the upper end of the band for the rest of the year due to sharp price rises in neighbouring South Africa and rising food costs. Inflation in diamond-rich Botswana jumped to 7,5 percent year-on-year in July from 6.4 percent in June.
The central bank left its key lending rate steady at 14,5 percent in August after cutting it 50 basis points in June -- the first reduction since January 2006. Analysts say inflation near the top end of the band may make further cuts this year unlikely, though the outlook in 2008 appears more benign, raising the possibility of further cuts in interest rates. Bank of Botswana Governor Linah Mohohlo said in August that improved productivity and other factors would bring sustainable low inflation over the long-term, but higher fuel and other administered prices posed upside risks to the outlook.
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