Bank Windhoek to increase prime lending rate
17 Feb 2016 15:50pm
WINDHOEK, 17 FEB (NAMPA) - In reaction to an increase in the repo rate by the Bank of Namibia (BoN) on Wednesday, Bank Windhoek has announced an increase in its prime-lending rate by 0,25 per cent.
This means the banks prime lending rate, the rate charged by banks to their customers on short-term loans, is increasing from 10,25 per cent to 10,50 per cent.
A media statement issued by Bank Windhoek Communications Practitioner, André le Roux on Wednesday said the mortgage-lending rate will also increase from 11,25 to 11,50 per cent.
These interest rate changes will be effective from 22 February 2016.
Namibia's central bank increased the repo rate by 25 basis points to 6.75 per cent on Wednesday, saying it wanted to prevent possible capital outflows that could put pressure on the country's foreign reserves.
The repo rate refers to the rate at which the central bank lends money to commercial banks such as First National Bank (FNB) of Namibia, Standard Bank Namibia, Bank Windhoek and Nedbank Namibia.