The Bank of Namibia’s Monetary Policy Committee (MPC) has decided to raise the repo rate by 25 basis points.

Bank of Namibia (BoN) Governor, Johannes !Gawaxab announced today that the bank decided to increase the repo rate by 25 basis points to 7.00 per cent.

!Gawaxab explained that the increase in the repo rate effectively brings the prime lending rate to 10.75 per cent.

“The decision was taken to contain inflationary pressure and its second-round effects and anchor inflation expectations,” said !Gawaxab.

The decision is also deemed appropriate to safeguard the one-to-one link between the Namibia Dollar and the South African Rand. Moreover, this monetary policy stance will take the current negative real policy interest rate to a neutral rate, he explained further.

Source: Namibia News Press Agency