Repo rate remains unchanged

25 Oct 2017 15:30pm
WINDHOEK, 25 OCT (NAMPA) – The Bank of Namibia (BoN) has left the repo rate unchanged at 6,67 per cent.
BoN Governor Ipumbu Shiimi announced this here on Wednesday, saying this level is deemed appropriate to continue supporting domestic economic growth, while maintaining the one-to-one link between the Namibian Dollar and the South African Rand.
He said although the overall growth remains weak, some key indicators in the domestic economy improved during the first eight months of 2017, relative to 2016.
These positive developments were concentrated in only a few sectors, notably mining and agriculture, while output in the construction, wholesale, retail trade and transport sector declined, he added.
The governor noted that annual inflation averaged 6,5 per cent during the first nine months of 2017, the same rate recorded during the corresponding period in 2016.
On a monthly basis, inflation slowed down from its peak of 8,2 per cent in January to reach 5,6 per cent in September 2017, mainly driven by lower inflation for food and non-alcoholic beverages, Shiimi said.
This rate of inflation is however slightly higher than its level of 5,4 per cent recorded in August 2017.
The governor further said that annual growth in Private Sector Credit Extension (PSCE) slowed during the first eight months of 2017, saying the annual growth in PSCE stood at 7,4 per cent on averaged during the reviewed period, lower than the 12,1 per cent recorded over the same period in 2016.
“This subdued growth in PSCE is in line with the generally weak growth within the domestic economy,” said Shiimi.
According to the central bank, the slower growth in PSCE was evident in reduced growth in credit advanced to both the household and corporate sectors, especially in the form of mortgage and instalment credit.
PSCE growth slowed further to 6,2 per cent in August 2017.
As of 30 September 2017, the country’s official stock of international reserves stood at N.dollars 31.5 billion, representing an increase both on a monthly and annual basis.
He added that the annual increase mainly stemmed from higher Southern African Customs Union receipts, debt repayment by the Banco Nacional de Angola, as well as an African Development Bank loan.