Wednesday, November 25, 2020

Administered prices spurn BoB objective

Administerted prices have once again spurned Bank of Botswana’s ability to achieve its inflation objective.

Speaking at a media conference to present the Bank’s annual report, the central bank’s Director of Research, Dr Kealeboga Masalila, said other than administered prices, like utility costs, there were comparatively lower pressures from other inflationary sources, including imported inflation, income growth and government revenue.

Dr Masalila said there is proof in statistics that Bank of Botswana’s Monetary Policy stance has supported the country’s economic growth.

This much was echoed by Bank of Botswana Governor, Linah Mohohlo, who has for now ruled out revising the 3 – 6 percent inflation objective that the bank has set for itself.

Dr Masalila said from this point on, there is room for improvement especially in the area of productivity.

Speaking under the theme, ‘Fiscal reforms; reducing reliance of public expenditure on mineral revenues’, the Bank’s Deputy Director of research, Matthew Wright, said there is also room for improvement at Botswana Unified Revenue Service.

Wright said tax collection can be improved through enhanced efficiencies.

He also warned against a complicated tax system, saying it could lead to reduction of tax base with some parties making attempts at tax evasion.

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