Repo rate remains at 5.50%

16 Apr 2014 14:00

The Bank of Namibia (BoN) has kept its repo rate at 5.50 % as part of
measures to continue supporting the domestic economy.

BoN in its Monetary Policy Statement announced today, noted the
domestic economy had shown some improvements during the first two
months of 2014, supported by mining sector activities, mainly in the
diamond sector.

The construction, wholesale and retail sectors according to the bank,
also showed strong growth.

Going forward, BoN said the same sectors are expected to sustain the
growth, forecasted at 5.3% in 2014.

Central bank's strategic communications and financial sector
development director, Ndangi Katoma said the overall inflation rate
has remained relatively low, standing at 5.2% in March.

 "The average inflation rate for the first three months of 2014 was
5.1%, well below the 6% average rate recorded during the same period
last year. However, it is expected to increase slightly in the second
quarter of 2014, although it will remain below 6%."

Meanwhile the Agricultural Bank of Namibia (AgriBank) has revealed its
current loan-book stands at N$2.4b.

AgriBank chief executive officer Leonard Iipumbu told a one-day
Organisation of African Unity (OAU)/Africa Union (AU) Golden Jubilee
conference, its loan-book includes funds advanced to Namibians for
agricultural purposes.

Additional reporting by Nampa.