WINDHOEK, Aug. 18 — The Monetary Policy Committee (MPC) of the Bank of Namibia, the country’s central bank, has decided to raise the repo rate by 75 basis points, from 4.75 percent to 5.50 percent, to ease inflationary pressures, an executive 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, said Ebson Uanguta, deputy governor of the Bank of Namibia, during a press briefing in Windhoek, the capital of Namibia.
According to Uanguta, Namibia’s domestic economic activity increased in the first six months of 2022, but inflationary pressures remained elevated, while growth in private-sector credit extension accelerated slightly.
“Namibia’s overall inflation is now projected to average around 5.8 percent for 2022, with higher rates in the second half of the year than in the first half,” he added.
With the new repo rate, Namibia is now back on par with that of South Africa. The country’s next MPC meeting is scheduled for Oct. 24-25. (Xinhua)
