WINDHOEK, Aug. 16 – The Bank of Namibia has cut the Repo rate by 25 basis points to 6,75% compared to the previous 7%.
The Monetary Policy Committee (MPC) took the decision in order to support the domestic economic growth, while maintaining the one-to-one link between the Namibia Dollar and the South African Rand.
Deputy governor Ebson Uanguta said activity in the domestic economy remained weak during the first six months of 2017 and Namibia’s overall inflation rate slowed from its high point in January 2017.
Meanwhile, the average annual growth in the private sector credit extension continued to slow down, while stock of international reserves increased.
“Activity in the domestic economy remained weak during the first six months of 2017, relative to the corresponding period of 2016. The weak performance was mainly reflected in the construction, manufacturing, wholesale and retail trade, as well as transport sectors,” Uanguta said.
He noted that over the same period there were a few improvements in sectors such as mining and communication, as well as livestock marketed that have provided some stimulus to the real economy.
“Namibia’s inflation rate averaged 7% during the first six months of 2017, compared to 6,3% during the corresponding period in 2016. Inflation, however, slowed from a peak of 8,2% in January 2017 to reach 5,4& in July 2017. A large part of the slowdown in inflation since the beginning of the year can be attributed to lower food inflation,” he said. – Sharma Mundingi