Repo rate up with 75 basis points

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The Bank of Namibia (BoN) on Wednesday announced an increase in the repo rate at 75 basis points.

The increase, according to a media statement by BoN, translates into lending rates of money by the central bank to local commercial banks from 4.75 per cent now to 5.50 per cent.

It said the decision to increase the repo rate was necessitated by the inflationary pressure and was taken at meetings held in the capital on Monday and Tuesday by the country’s Monetary Policy Committee (MPC).

“The increase is also deemed appropriate by the MPC in order to safeguard the country’s peg arrangement (link between the Namibia Dollar and South African Rand) and the international financial obligations following comprehensive reviews of the global, regional and domestic economic developments,” BoN said.

The central bank will further continue to monitor the developments and potential effects on the domestic economy so that it acts appropriately in line with its mandate of ensuring price stability in the interest of the sustainable economic growth and development of the country, it added.

The next MPC meeting is on 24 and 25 October this year.

Source: The Namibian Press Agency