Key Rates


Inflation September                 9.7% (July 10.4%)

                                    04/10/96           27/09/96
Bank Rate                           13.00%             13.00%
Prime Rate                          14.50%             14.50%

Exchange Rates                      11/10/96           04/10/96
US$                                 0.2836             0.2843
£Stg                                0.1799             0.1815
SA Rand                             1.2895             1.2868
DM                                  0.4339             0.4351
ZM$                                 2.9743             2.9411
Yen                                 31.5600            31.4700
Can$                                0.3833             0.3867
ECU                                 0.2267             0.2278
SDR                                 0.1969             0.1976


INFLATION



Unlike neighbouring South Africa which has seen a dramatic drop in the inflation rate in recent years, Botswana has been struggling to bring the rate to below 10%. Its efforts have now been rewarded with the annual rate dropping from 10.4% in July to 9.9% in August and 9.7% in September.



Recently released Consumer Price Statistics show that the National Cost of Living Index rose from 173 to 173.05 between August and September, the lowest change since November, 1995.



The drop in inflation is most marked in respect of the increasingly populated urban areas where the September rate was below 8.7%. In the rural areas, however, double digit inflation of 11.4%, a drop of a mere 1% from the previous month.



The highest increase on the food stuffs indicator was dairy produce - perhaps a consequence of the devastating cattle lung disease in the north of the country in respect of which the Government is taking drastic and costly steps to protect one of the mainstays of Botswana's economy.



The content of this article is intended to provide general information on the subject matter. It is not therefor a substitute for specialist advice.



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