BoB calls for credible reporting
Communication entails common understanding and usage of language -Gone are the days of policy decisions being shrouded in mystery
Bank of Botswana (BoB) Governor, Moses Pelaelo, has cautioned the media and policy makers to avoid unnecessary panic and confusion in the market by deliberately misreporting due to lack of understanding of some concepts.
Presenting on the ‘Importance of Communication in the Macroeconomic Policy Management, at the Kgori Capital Business Club seminar organized by the Kgori Business Press club on Tuesday, Pelaelo said the role of communication in ensuring ultimate efficacy or potency would mean higher rates of economic growth with respect to fiscal and monetary policies.
He said there was a time in history when policymaking was shrouded in secrecy where policy framework and actions were deliberately designed to shock the market.
“The language was coloured by obfuscation and ambiguity in order to generate uncertainty,” he said, also remembering the words of Former Chairman of the United States (US) Federal Reserve Bank, Allan Greenspan who once said he had learnt to ‘mumble with great incoherence since he became a central banker’. “If I seem duly unclear to you, you must have misunderstood what I said,” Pelaelo quoted Greenspan in a speech he had made in 1987.