Repo rate remains unchanged at 7.75 per cent

WINDHOEK: Governor of the Bank of Namibia, Johannes !Gawaxab announced on Wednesday that Namibia’s repo rate is to remain the same, at 7.75 per cent, as decided by the Monetary Policy Committee (MPC).

The prime lending rate remains steady at 11.50 per cent.

According to !Gawaxab, the committee held its first bi-monthly meeting for 2024 on Monday and Tuesday to decide on the appropriate monetary policy stance to be implemented over the next two months. He said the decision was made to continue safeguarding the peg between the Namibia Dollar and the South African Rand while supporting the domestic economy.

Factors put into consideration include the domestic economic activity increase in 2023.

‘Inflation moderated, while the growth in Private Sector Credit Extension (PSCE) remained subdued. The merchandise trade deficit continued to improve, and the stock of international reserves remained sufficient to support the currency peg and meet the country’s international financial obligations. World output is estim
ated to have risen above earlier expectations in 2023, and is projected to remain resilient in 2024. Inflation slowed in both the Advanced Economies (AEs) and the Emerging Market and Developing Economies (EMDEs). Most global monetary authorities kept their policy rates unchanged since the previous BoN MPC meeting,’ !Gawaxab said.

The next MPC meeting will be held on 15 and 16 April 2024.

Source: The Namibia Press Agency