Botswana 2010 business confidence up - c.bank poll
The central bank polled 100 businesses across sectors
between September and November in 2009.
The bank said businesses revised their inflation
expectations downwards compared with the previous survey.
Inflation was seen averaging 9.6 percent and 10.2 percent in
2009 and 2010 respectively.
Central Statistical Office figures in December showed
consumer price inflation slowed to 5.0 percent year-on-year in
November as food and non-alcoholic beverages costs decreased and
owing to a high inflation base the previous year.
Largely due to easing inflation, the central bank cut its
main lending rate by 100 basis points to 10 percent in December
2009, bringing cumulative rate reductions to 500 basis points
since December 2008.
The bank said in its survey on Tuesday businesses were not
expecting further interest rate cuts.
"Businesses appear to regard recent domestic interest rate
cuts as being only temporary. Whereas in the previous survey
there was a strong sentiment that rates would continue to be cut
in both 2009 and 2010, this has been replaced by some
expectation of rate increases," it said.
The central bank also said companies saw economic growth of
1.7 and 2.6 percent for 2009 and 2010 respectively.
A Reuters poll in September showed the Botswana economy is
expected to contract by 11 percent in 2009 and grow by 6 percent
Prospects for employment were subdued for the first part of
the year as firms were hesitant to hire but the outlook
gradually improved for the latter part of 2010, the survey
(Reporting by Phumza Macanda; editing by Stephen Nisbet)