The Bank of Namibia’s Monetary Policy Committee has decided to increase the repo rate by 25 basis points to 4.0 per cent, BoN Governor Johannes !Gawaxab announced on Wednesday.

!Gawaxab said the decision was taken following a review of the global, regional and domestic economy, as well as financial developments.

He said the Monetary Policy Committee is of the view that the increase in the repo rate by 25 basis points to 4.0 per cent is appropriate to safeguard the one-to-one link between the Namibian Dollar and the South African Rand. The monetary policy stance is also a step towards normalising the current negative real interest rate environment and establishing a positive real interest rate that is conducive to long-term economic growth.

“The bank would like to reiterate that addressing vaccine hesitancy remains key to the extent, speed and sustainability of the economic recovery,” said !Gawaxab.

Source: The Namibian Press Agency