Local banks cut interest rates

Local banks have cut interest rates by 0.25 per cent following the announcement by the Monetary Policy Committee of Bank of Namibia to cut the repo rate from 4.25 per cent to 4.00 per cent.

In a recent media statement availed to Nampa, Bank Windhoek’s head of funding and liquidity, Diederik Kruger said Bank Windhoek has reduced its prime lending rate from 8.00 per cent to 7.75 per cent and the mortgage lending rate from 9.00 per cent to 8.75 per cent.

The new rates are effective from 23 Tuesday 2020.

“While the possibility of more cuts on interest rates cannot be ruled out at this point we expect that the benefit from the sharp cuts will gradually alleviate the debt burden of our clients. This could see some recovery in economic activity,” Kruger said.

Corporate communications officer at Standard Bank Namibia, Magreth Mango said that the bank has reduced interest rates on 18 June 2020.

“Following the BoN decision to decrease the repo rate Standard Bank Namibia has decreased its loans, advances and deposits interest rate. We hope to alleviate the increased economic pressure resulting from the Coronavirus pandemic,” she said.

The 4.00 per cent policy rate announcement by the MPC of BoN is the first in the bank’s history.

Source: Namibia Press Agency