Monetary Policy Committee (MPC)

03 Oct

Inflation expected to stabilise at 4.7%

ObserverObserver MoneyBank of Namibia, Monetary Policy Committee (MPC)

CHAMWE KAIRA Simonis Storm stockbroker and wealth management has projected that inflation will stabilise at approximately 4.7% year on year by the end of this year. Furthermore, Simonis expects an additional 25 basis point rate cut at the December Monetary Policy Committee (MPC) meeting, bringing the year-end repo rate to 7.25%. The central bank is likely to adopt a cautious stance, closely monitoring the effects of this monetary easing before considering further policy adjustments, the firm noted. The current repo rate in Namibia stands at 7.50%, with the prime lending rate at 11.25%. Simonis said that although these rates remain…

14 Aug

Economists warn that 25 basis points won’t ease the cost of living

ObserverNational NewsMonetary Policy Committee (MPC)

Martin Endjala Despite the central bank's move to reduce interest rates from 7.75% to 7.50%, economists argue that the 25 basis points are not sufficient to address the high cost of living. On 14 August, the Monetary Policy Committee (MPC) of the Bank of Namibia (BoN) decided to reduce the repo rate by 25 basis points (bps) to 7.50%. According to the BoN’s governor, Johannes !Gawaxab, the decision was made following a comprehensive review of domestic, regional and global economic developments. In reaction to the announcement, independent bank researcher and economist, Josef Sheehama told the Windhoek Observer that the BoN…

26 Oct

Repo rate raised for the fifth time

ObserverNational NewsMonetary Policy Committee (MPC), Repo rate raised for the fifth time

Staff Writer The Bank of Namibia’s Monetary Policy Committee (MPC) today raised the repo rate by 75 basis points from 5.50 percent to 6.25 percent for the fifth time this year. At the beginning of this year the country’s rate was 3.75 before it was raised by 25 basis points to 4%. The central bank kept the repo rate at 3.75 percent for the whole of 2021, the lowest the country has enjoyed in a long time. However, since the beginning of this year on 16 February it started pushing it up and has raised it cumulatively by 250 basis…

16 Jun

BoN hikes lending rate …Hard times laying ahead

ObserverNational NewsBoN hikes lending rate …Hard times laying ahead, Monetary Policy Committee (MPC), Repo rate hike to 4.75 percent

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.…

10 Dec

BoN maintains Repo rate at 3.75 percent

ObserverUncategorisedJohannes Gawaxab, Monetary Policy Committee (MPC), Repo rate

Staff Writer The Monetary Policy Committee (MPC) of the Bank of Namibia has decided to keep the Repo rate unchanged at 3.75 percent. “This decision was taken following a review of global, regional and domestic economic and financial developments. The MPC is of the view that the rate remains appropriate to continue supporting domestic economic activity, while at the same time safeguarding the one-to-one link between the Namibia Dollar and the South African Rand,” BON Governor, Johannes !Gawaxab announced on Wednesday. !Gawaxab said the domestic economic activity declined during the first ten months of 2020 and is forecasted to register…

22 Oct

BoN maintains Repo rate unchanged

ObserverObserver MoneyBank of Namibia (BoN), BoN Governor Johannes !Gawaxab, Monetary Policy Committee (MPC), Private Sector Credit Extension (PSCE)

Staff Writer The Bank of Namibia (BoN) on Wednesday announced that its Monetary Policy Committee (MPC) had resolved to keep the Repo rate unchanged at 3.75 percent. “The MPC is of the view that the rate remains appropriate to continue supporting domestic economic activity, while at the same time safeguarding the one-to-one link between the Namibia Dollar and the South African Rand,” BoN Governor Johannes !Gawaxab said. He said domestic economic activity had slowed during the first eight months of 2020, compared to the same period of 2019. The bank forecasts the domestic economy to contract by 7.8 percent in…