BoN hikes lending rate …Hard times laying ahead

Tujoromajo Kasuto The Bank of Namibia has announced another half a percent repo rate hike to 4.75 percent, following the Monetary Policy Committee (MPC) meeting of the 13th and 14th of June 2022.Financial analysts predict to more increases this year with more to come in 2023 to take interest rates to pre-pandemic levels.The repo rate affects interest rates, which in turn affects instalment payments on a house and other debts such as bank overdrafts and loans.This is the third hike in the repo rate in succession. The central bank uses repo rate to arrest inflation, but reduces consumer purchasing power.…