Policy transformation to ignite economic activities - BoB
The central bank has challenged the business community to rally behind its expansionary monetary and fiscal policies to boost prospects for economic recovery.
The Bank of Botswana ( BoB) encouraged business s t a k e h o l d e r s t o f a s t - track implementation of transformation initiatives and structural reforms for broad economic benefits.
Moses Pelaelo, the reserve bank governor said an allencompassing policy change wi l l raise prospects for inclusive growth and economic diversification.
“The redesign of industrial and trade policies to promote exports, transition towards digital economy, greater financial inclusion and broader participation by all segments of society in productive economic activities, should result in fast tracking the recovery, as well as enhancing economic resilience and moving the economy to a high- income status,” said Pelaelo when launching the monetary policy this week.
He said the onus for effective implementation is not on government alone.
“It is on the public sector broadly, including parastatals and development finance institutions, as well as a more innovative and dynamic private sector”, Pelaelo said.
BoB says cooperation of all key players in the economy will help to continue success in achieving price and financial stability to which the reserve bank is fully committed.
BoB’s commi tment to economic stability has been indicated by maintaining sound policy despite the prevailing COVID- 19 pandemic threatening the countr y’s economic gains.
Pelaelo said the bank endeavours to overcome and live through the crisis without engendering longterm damage.
“It is important to, first, have the fortitude to not allow a crisis destroy hitherto a track record of prudent policy making, solid institutional frameworks and, in general, governance architecture, which could have lasting adverse effects on policy integrity, credibility and economic performance”, Pelaelo said.
He said stakeholders in the economy need to have the foresight and agility to not waste the crisis.
Pelaelo said the bank will seize the window of opportunities engendered by the crisis to undertake structural and policy reforms, adding that BoB is committed to ensuring that macroeconomic policies are congruent and the policy choices and responses are positive for immediate stabilisation.
Apart from COVID- 19’ s devastating impact on economic activity and livelihoods, Pelaelo acknowledges the pandemic could challenge the resilience and efficacy of conventional policies and lead to inadvertent disruption or destruction of otherwise good and timetested policy frameworks and rules.
Meanwhile Pelaelo said in recognition of the short- term adverse developments in the domestic economy due to the COVID- 19 pandemic, and anticipated disinflationary pressures from the below- trend economic performance in the medium term, the bank has implemented several measures to avert or alleviate the prospective adverse economic fallout.