Namibia c.bank keeps Repo rate unchanged at 7.75%

Namibia’s central bank decided to keep its Repo rate unchanged at 7.75 per cent for the fourth consecutive meeting, citing positive real interest rates and slow credit growth, its Monetary Policy Committee (MPC) said in a statement on Wednesday. As such, the prime lending rate also remained steady at 11.50 per cent.

“With real interest rates remaining positive, and slow credit growth, amid a fair level of international reserves, the MPC decided to maintain the Repo rate at its current level. This policy stance will continue to safeguard the one-to-one link between the Namibia Dollar and the South African Rand and support domestic economic activity.” the MPC statement read.

Inflation in January moderated to 5.4 per cent year on year, and the central bank projects it to average 4.8 per cent in 2024. Economic growth is forecasted to be 3.4 per cent this year, down from 3.9 per cent in 2023.

“Inflationary pressures are expected to continue receding with consumer price inflation projected to average 4.8 percent in 2024, unchanged compared to the previous forecast.”

The central bank aims to maintain the 1:1 link between the Namibian dollar and the South African rand. Governor Johannes Gawaxab noted healthy foreign direct investment flows related to energy exploration.