Bank of Namibia (BoN) has voted to keep the repo rate at 5.50% and inflation rate at 5.6%.
Speaking at the monitory policy announcementtoday, BoN governor Ipumbu Shiimi noted that “activities in the advanced and emerging economies have picked up. Domestic development suggests that the economic performance was satisfactory during 2013. The prospects for 2014 remain encouraging with improved economic growth and sustained low inflation”.
He stressed that Namibia’s overall average inflation in 2013 declined to 5.65% from 6.7% in 2012, mainly due to a reduction in food and transport inflation. Going forward, inflation is projected to increase moderately to 6%, which is still an acceptable level and the domestic economy is forecasted to grow by 5.3%; likely to be supported by construction.
The growth in Private Sector Credit Extension (PSCE) moderated to 14.3% by the end of last December from 17% in December 2012. The decline reflected a decrease in levels of overdraft credit and no growth in other loans and advances granted to the business sector.
The economic growth in 2013 was mainly driven by construction, mining, wholesale and retail trade.