At its meeting today, the Monetary Policy Committee (MPC) decided to reduce the Bank Rate from 10 percent to 9.5 percent. In November, inflation was 7.2 percent, unchanged from October and outside the upper end of the Bank of Botswana’s medium term objective range of 3 – 6 percent. However, the decision reflects the positive assessment of the inflation outlook whereby, despite transitory factors that have resulted in upward inflationary pressures in the short term, inflation is expected to fall within objective range in the second quarter of 2011. For more information see the press release.