WINDHOEK, Nov. 20 — The Bank of Namibia has welcomed the decision taken by South Africa to modify its inflation target from the previous 3.6 percent to 3 percent.
Kazembire Zemburuka, director of communication and international relations of the central bank, released a statement on Monday, saying that the reduced inflation target will consequently affect Namibia as a member of the Common Monetary Area (CMA).
“The lower inflation target set by South Africa is expected to, among other things, lead to lower inflation and a reduction in interest rates in South Africa over the medium to long term,” he said.
According to the Namibian central bank, South Africa‘s lower inflation target would result in low and stable long-term inflation in Namibia.
“Mindful of the envisaged benefits of the lower inflation target, the Bank of Namibia welcomes the new target, as this could enhance welfare and macroeconomic stability for Namibia,” he added.
Namibia, along with South Africa, Eswatini, and Lesotho, is a member of the CMA, where the currencies of smaller members are all pegged one-to-one to the South African rand. Namibia Daily News/ Xinhua
