Repo rate remains unchanged at 5,5 per cent

19 Jun 2013 09:30
WINDHOEK, 19 JUN (NAMPA) - The Bank of Namibia (BoN) has left the lending rate unchanged for the sixth consecutive time this year.
BoN Governor Ipumbu Shiimi said on Wednesday during the monetary policy announcement that the Central Bank is keeping the repo rate unchanged at the current level of 5,5 per cent.
The repo rate needs to remain low to support the domestic economy, and mitigate the impact of slow growth in many of the country's trading partners.
The bank also maintained its Gross Domestic Product (GDP) forecast of 4,4 per cent for 2013.
?Despite Namibia posting relatively robust growth in the first quarter of 2013, given global economic conditions, growth is expected to remain below the 7 per cent targeted level in the fourth National Development Plan (NDP4) for the remainder of the year,? Shiimi noted.
He said inflation remains at 6,1 per cent, describing it as being at a tolerable level, despite the recent Namibia Dollar depreciation against major currencies.
International reserves? levels also continue to be sufficient, he added.