Bank of Namibia cuts repo rate to 7.50%

Bank of Namibia has lowered on Wednesday the repo rate by 25 basis points to 7.50 per cent to support the economy and maintain the Namibia Dollar’s peg with the South African Rand.

This decision follows a review of economic conditions, including a slowdown in growth, projected at 3.1 per cent for 2024, and easing inflation at 4.8 per cent. Despite a widening trade deficit and subdued private sector credit, international reserves are sufficient, the central bank’s report shows.

“Global economic activity continued on a gradual expansion path during the second quarter of 2024, with growth expected to remain broadly stable in 2024 and 2025. While inflation recently exhibited a mixed picture, it is significantly lower than a year earlier. The monetary policy easing cycle has commenced even though most monitored central banks continued to exercise caution regarding interest rate reductions.” the MPC statement read.

Attribution: Bank of Namibia’s MPC statement