Bank of Namibia confirms repo rate unchanged

Bank of Namibia confirms repo rate unchanged

On the 9th of April 2019, the Monetary Policy Committee (MPC) of the Bank of Namibia held its bi-monthly meeting and decided to maintain the repo rate unchanged at 6.75%. This decision was taken following a review of global, regional and domestic economic and financial developments.

The conclusion of Namibia’s MPC followed the announcement of South African Reserve Bank governor Lesetja Kganyago that South Africa’s repo rate will also remain unchanged at 6.75% due to declines in the business confidence index two weeks ago. The last change in South Africa’s repo rate was confirmed in November 2018, when it increased by 25 basis points to 6.75%. At the time, governor Kganyago listed rising inflation and the weak Rand as major factors.

Contrary to South Africa’s change in repo rate, Namibia’s MPC have maintained the repo rate at 6.75% since August 2017. The Deputy Governor of the Bank of Namibia, Mr. Ebson Uanguta, confirmed the bank’s decision to maintain the repo rate for prolonged periods as a positive measure to keep the cost of capital affordable. He continued to state that the steady repo rate, in contrast to past situations where interest rates exceeded 10%, enables individuals and businesses to service debt efficiently.

The next meeting of the Bank of Namibia’s MPC will be held on 11 June 2019.

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