BoN keeps repo rate unchanged

20 Jun 2013 03:02

The Bank of Namibia has kept the repo rate unchanged at 5,5 percent to stimulate economic growth.

Announcing the monitory policy review statement this afternoon BoN Governor Ipumbu Shiimi argued that that although the events in the international economic setup needs to be watched they expect growth for this year to be positive.

"Domestic economic growth in 2013 is expected to be positive and driven by increased output in the mining, manufacturing and construction industries.

Inflation has remained unchanged at 6.1 percent in April and May 2013, as declining transport prices have offset increases in the cost of utilities and food.

Inflation excluding food and energy prices has remained at 3.4 percent, thus suggesting an absence of underlying inflationary pressures. Going forward, Namibia Dollar depreciation against major currencies may present an inflation risk,". Shiimi said

However he ectressed concern over the continued private sector credit extension which continues to experience high growth.

" This growth, however, moderated in April 2013 to 14.0 percent. Growth in credit extension to both individuals and businesses slowed in April when compared to March 2013. Growth in credit extension in the form of mortgage loans remained almost unchanged and installment sales increased slightly in April, however, both remain at subdued levels when compared with the same period of last year," he said.