Botswana CPI outlook augurs well for accommodative policy: cbank

A fruit seller sits at a roadside stall in the diamond mining town of Letlhakane, 400 km (249 miles) northwest of the Botswana capital, Gaborone, September 8, 2009. REUTERS/Ed Cropley

JOHANNESBURG (Reuters) - Botswana's central bank expects inflation to remain within a 3-6 percent target band in the medium term, and this augurs well for accommodative monetary policy, Governor Linah Mohohlo said in a statement on Tuesday. The Bank of Botswana bank cut its benchmark lending rate by 100 basis points to 6.5 percent last month, saying the state of the economy and inflation outlook provided scope for doing that.