Bank of Namibia confirms repo rate unchanged

Bank of Namibia confirms repo rate unchanged

According to Bank of Namibia Governor Iipumbu Shiimi, going forward, the domestic economy is projected to remain weak in 2019. The central bank stated that the annual average growth in credit extended to the private sector increased to 6.4% during the first four months of 2019, compared to 6.1% in the corresponding period of 2018. This was mainly due to the utilization of short-term credit facilities by businesses. Shiimi further added since the previous monetary policy committee meeting in April 2019, most central banks in both the advanced economies and emerging market and developing economies have left their policy rates unchanged. “The exceptions were the central banks of India and Angola, cutting policy rates. Inflation in the monitored advanced economies and emerging market and developing economies ticked up in April 2019, except in Russia, South Africa and Angola where it slowed,” Shiimi said.

Meanwhile, annual average inflation increased to 4.5% during the first four months of 2019 compared to 3.6% in the corresponding period of 2018. The rise is mainly due to an acceleration in inflation for the categories of food and non-alcoholic beverages as well as transport. Overall inflation is projected to average 4.5% in 2019. In terms of foreign reserves, Shiimi said as of last month, the stock of international reserves stood at N$34.1 billion, compared to N$32.6 billion reported in the previous monetary policy committee statement. “This amount of international reserves is estimated to cover 5.6 months of imports of goods and services,” he concluded.

Related News