Bank of Namibia today announced that the repo rate will remain unchanged at 6.5 per cent

The Bank of Namibia (BoN) today announced that the repo rate will remain unchanged at 6.5 per cent.

Speaking at a media conference in the capital, BoN Governor Ipumbu Shiimi said the Monetary Policy Committee made the decision in order to continue supporting domestic economic activities and to maintain the one-to-one link between the Namibian Dollar and the South African Rand.

The repo rate is the cost at which the central bank lends money to commercial banks and an increase or decrease in that rate is most likely to affect the interest rate that commercial banks charge consumers.

Shiimi said global economic growth slowed during the second quarter of 2019, while the inflation rate in the key Advanced Economies (AEs) remained low, while increasing slightly in a number of emerging market and developing economies.

Shiimi further indicated that going forward, growth in the global economy is projected to slow down further to 3 per cent in 2019 before recovering to 3.4 per cent in 2020.

Source: Namibia Press Agency