BoN maintains repo rate at 6.75 per cent

13 Feb 2019 15:10pm
WINDHOEK, 13 FEB (NAMPA) - The Bank of Namibia (BoN) has maintained the repo rate at 6.75 per cent, Deputy Governor Ebson Uanguta announced on Wednesday.
The decision was taken after a review of global, regional and domestic economic and financial developments by the reserve bank’s Monetary Policy Committee’s first bi-monthly for 2019 held on Tuesday.
“The repo rate at this level is appropriate to continue supporting domestic economic growth, while maintaining the one-to-one link between the Namibian Dollar and South African Rand,” Uanguta said.
The repo rate is the cost at which the central bank lends money to commercial banks and an increase or decrease in the rate is most likely to affect the interest rate that commercial banks charge consumers.
The repo rate was maintained at 6.75 per cent throughout 2018 despite weak domestic economic growth last year.
The weak outcome in 2018 was mainly attributed to declining economic activity in sectors such as agriculture and wholesale and retail trade, and following negative growth of 0,9 per cent recorded in 2017.
Meanwhile, Namibia’s foreign reserve stock stood at N.dollars 30.7 billion as at 31 January 2019, a drop of N.dollars 400 million, from N.dollars 31.1 billion in December 2018.
“This amount of international reserves is estimated to cover 4.2 months of imports of goods and services. At this level, the reserves are sufficient to protect the peg of the Namibian Dollar to the Rand, as well as meeting the country’s international financial obligations,” Uanguta said.