Heeding the call of analysts, Botswana’s central bank cut its benchmark interest rate on Friday by 1% to 14%, as inflation fell from 13.7% to 12.8% and appears likely to continue to rapidly move towards the bank’s medium-term objective range of 3-6% in 2009.  Botswana, the world’s largest diamond producer, has been especially vulnerable to falling demand for the valuable mineral in its two largest buyers by volume, the U.S. and Japan.

Advertisements