Botswana's central bank left its Bank Rate unchanged at 5.0 percent, saying the current state of the economy and the outlook suggests the prevailing monetary policy stance is consisting with keeping inflation within the 3.0-6.-0 percent target range.
     

The Bank of Botswana (BoB), which has maintained its rate since cutting it to the current level in October 2017, said subdued domestic demand pressure and a modest rise in foreign prices contribute to a positive outlook for inflation, which is expected to rise slightly in the short term due to higher domestic fuel prices.

Botswana's inflation rate rose to a 2018-high of 3.6 percent in October from 2.9 percent in September.
     

Botswana's economy has been improving this year, helped by a recovery in the mining sector, which grew 5.6 percent in the year to June compared with a contraction of 10 percent last year.
     

Gross domestic product grew 4.4 percent in the 12 months to June, up from 3.2 percent in the same 2017 period, with growth in non-mining output easing to 4.3 percent from 5.0 percent.
     

BoB expects growth to improve in the short to medium term, supported by the mining sector and the services sector.
     

"Overall, it is anticipated that the economy will operate close to, but below full capacity in the medium term, thus posing no upside risk to the inflation outlook," BoB said