Repo rate remains unchanged

15 Feb 2017 14:40pm
WINDHOEK, 15 FEB (NAMPA) - The central bank has kept the repo rate unchanged at 7 per cent to continue supporting Namibia’s economic growth.
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 in the event of any shortfall of funds.
Speaking during a media briefing here on Wednesday, Bank of Namibia (BoN) Governor, Ipumbu Shiimi said the decision was taken during the last Monetary Policy Committee (MPC) meeting held on Tuesday.
“The decision was taken following a review of the global, regional and domestic economic conditions, as well as the financial developments,” he said.
The BoN repo rate has been at 7 per cent since April 2016 following a hike of 25 basis points in response to the South African Reserve Bank also raising its repo rate to 7 per cent.
Namibian commercial banks' prime lending rate stands at 10,75 per cent, while the mortgage lending rate is 11,75 per cent.
However, the annual inflation rate has increased from 7.3 per cent in December 2016 to 8.2 per cent in January 2017.
Shiimi explained that this was driven by the rise in the inflation rates for major categories such as housing, water, electricity, gas and other fuels, transport as well as food.
“This is the highest level since October 2009,” he said.