By Lylie Happiness
OSHAKATI, April 13 – The Bank of Namibia has increased the repo rate by 25 basis points to 4.25 percent.
The bank’s Monetary Policy Committee (MPC) made the announcement, to increase the rate from 4.00 percent, in Windhoek today following their bi-monthly meeting on 11 and 12 April.
The MPC stated that this decision is appropriate to safeguard the one-to-one link between the Namibia Dollar and the South African rand while meeting the country’s international financial obligations.
The decision was taken following a review of global, regional, and domestic economic trends, as well as financial developments, mindful of the need to counter the build-up of inflationary pressures in the economy.
Since the last MPC meeting in February 2022 commodity prices continued to increase. This is mainly due to rising energy and food costs, labor shortages, and increasing demand. Inflation in South Africa remained steady during February, from the previous month, with the upward pressure coming from food and fuel prices. While other categories moderated.
The next meeting of the MPC will be held on 13 and 14 June. – Namibia Daily News