WINDHOEK, June 16 — The Bank of Namibia’s Monetary Policy Committee has decided to raise the repo rate by 50 basis points to 4.75 percent, the central bank announced Wednesday.
The decision was taken with consideration of the persistent inflationary pressures and is deemed 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, Bank of Namibia governor Johannes Gawaxab said in a statement.
Namibia’s new repo rate is now back on par with that of South Africa.
Since October 2021, Namibia has been experiencing negative real interest rates, a situation attributed to the annual inflation rate outstripping the repo rate. (Xinhua)