Lebanna added that, for once, the government had confirmed the introduction of the 30% levy on alcohol from the 1st of November in spite of the negative impact the levy would have on inflation.
She expects the levy, which has been sweetened from the previous planned to 70%, to add about three percent to the previous estimate of the November reading.
Motlaleng has praised the Bank of Botswana for not tempering with rates saying, “I don’t see why BoB would tamper with rates.”
He added that the move will boost confidence in the credit sector including the banking industry.
“Given the moderate tone adopted at the last Monetary Policy Decision meeting, we expect the Bank of Botswana to maintain the bank rate at the current level of 15.5%, at least until the end of the year,” Lebanna said of the interest rates outlook.
Investec says that following the peak in November, inflation should moderate during the first half of 2009, albeit at higher levels than previously projected.
