Windhoek Feb 20 – in response to the announcement by the Monetary Policy Committee of the Bank of Namibia to decrease the policy rate as announced on 19 February 2020, Bank Windhoek hereby confirms the reduction of its Prime Lending Rate by 0.25% from 10.25% to 10.00%. The Mortgage Lending Rate will decrease from 11.25% to 11.00%
The interest rate changes will be effective from Wednesday, 4 March 2020.
According to Diederik Kruger, head of funding and liquidity management at Bank Windhoek, the reduction in interest rates is aimed at resuscitating the economy and to give much needed relief to consumers. It will also be sufficient to protect liquidity in the local market and lower the government’s cost of funding at the shorter end of the curve. The SA Reserve Bank also lowered their interest rate in January 2020.
“Hopefully the decrease in interest rates and lower house prices will help new or first time buyers to own a house of their own. We recommend that clients make use of this opportunity to pay off their debt quicker or start saving to give them a buffer against unforeseen expenses,” Kruger said.