Namibia Central Bank Cuts Interest Rate to 7%
The Bank of Namibia’s (BON) monetary policy committee (MPC), in a unanimous decision, voted to cut key policy or interest rate by 25 basis points to 7.00%, an official statement said.
At the Monetary Policy Committee’s (MPC) sixth and final meeting of 2024, held on 2 and 3 December, the Bank of Namibia Governor, Johannes !Gawaxab revealed the repo rate has been slashed by 25 basis points, bringing it down to 7%.
The rate-cut decision is to stimulate economic growth while maintaining the peg between the Namibian dollar and the South African Rand as the country’s inflation continues to slowdown.
Commercial banks are accordingly expected to reduce their lending rates by 25 basis points, bringing their prime rate to 10.75%, the Bank of Namibia chief said in an official statement.
!Gawaxab said in deciding on this policy stance, the committee also considered the policy rate differential with the South African Reserve Bank, with a keen desire to close the gap over the medium term.
Furthermore, the committee welcomed the current fiscal policy stance, which is supportive of macroeconomic stability, underscoring the importance of the government’s growth-friendly fiscal path and investment in growth-enhancing initiatives.
The Apex Bank chief noted that the domestic economic activity continued to expand during the first ten months of 2024. The country looks to boost private sector activities and keep employment growth in upward trajectory.
“The domestic disinflationary process progressed steadily since the previous MPC meeting, while growth in private sector credit extension improved despite remaining subdued,” he said. #Namibia Central Bank Cuts Interest Rate to 7% Equities Investors Gain N138bn as Lafarge, VFD Group Rally
