The Bank of Namibia (BoN) has increased the repo rate by 0.25% to
5.75 % on the back of an upward trend in inflation.
Announcing the Monetary Policy today BoN governor Ipumbu Shiimi
noted that the rapid growth in imports of vehicles partly financed by
installement credit remains a concern. “This has put pressure on the
international reserves of the country and requires monitoring.”
The annual growth rate in Domestic Private Sector Credit increased
to 15.8% in April 2014 compared to 14.3% in December 2013.
Growth in private sector credit resulted from higher demand by both
individuals and businesses.
The inflation rate has been on an upward trend in the past five
months. Annual inflation rose from 4.9% in December 2013 to 6.1%
in May 2014 mainly due to increase in food and transport prices.
However, the domestic growth remained positive during the first
quarter of 2014 supported by construction, wholesale, retail trade
as well as the communication sectors. In contrast, activities such as
livestock farming and uranium mining performed weak.