Repo rate increases to 5.50%

The Bank of Namibia's Monetary Policy Committee (MPC) has increased the Repo rate by 75 basis points from 4.75% to 5.50%. The Bank's Deputy Governor Ebson Uanguta made this announcement in the capital, this morning. This comes as South Africa's central bank also hiked the repo rate to 5.5% in July. The decision, which will be implemented over the next two months, is meant to safeguard the fixed exchange rate between the Namibia Dollar and the South African Rand, anchoring the inflation expectations and meeting the country's international financial obligations. Uanguta says the committee's decision was also informed by the global, regional and domestic economic development. The repo rate is the rate at which the central bank of a country lends money to commercial banks in the event of any shortfall of funds. The instrument is also used by monetary authorities to control inflation.

Category

Author
Daniel Nadunya