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The Central Bank of Botswana cut its benchmark interest rate by a further 25 bps to 1.90% at its meeting on August 22nd, 2024, marking the second consecutive rate reduction. Governor Cornelius Dekop stated that there is room to ease monetary policy, given prevailing economic conditions and outlook. As the economy is expected to continue operating below its capacity over the medium term, demand-driven inflationary pressures should remain contained. The country's headline consumer inflation accelerated to 3.7% in July, up from 2.8% in June, but within the central bank's medium-term target range of 3% to 6%. Inflation is now expected to average 3% in 2024, down from June's meeting estimate of 3.6%.