The Bank of Namibia (BoN) this week increased the repo rate by 50 basis points, and this has made inflation the main talking point in households.

By historic standards, inflation is not at its highest, but it has become a more prevalent issue in 2023 than it was in 2016/17.

The head of research at Cirrus Capital, Robert McGregor, believes this is because inflation this time around affected lower-income households.

Namibians will have to tighten their belts even more as the central bank lifts the repo rate by another 50 basis points.

The repo rate now stands at 7.5%, up from 7.25%.

The central bank says that, since the last Monetary Policy Committee (MPC) meeting, inflation has remained elevated but generally moderated, with the exception of the US Federal Reserve, the Bank of England, the European Central Bank, and the South African Reserve Bank.

The Bank of Namibia (BoN) has announced that it will increase the repo rate by 25 basis points to 7.25% following a rise in inflation rates in March.

Food inflation will remain the main driver of inflation in Namibia for the remainder of 2023 due to food shortages in both Namibia and South Africa, as well as a weaker Rand exchange rate.

The annual inflation rate increased by 7.2% last month, compared to 4.5% in March last year, with the highest rates recorded in the two Kavangos, Kunene, Ohangwena, Omusati, Oshana, Oshikoto, Otjozondjupa, and Zambezi regions.

The Bank of Namibia has increased the repo rate by 25 basis points, from 6.5 to 7 percent.

The increase, the bank says is to maintain inflation expectations, protect the peg arrangement with South Africa and meet international financial obligations.

The Bank of Namibia has again increased the repo rate, this time by 50 basis points, from 5.5 to 6.75 percent.

Governor Johannes !Gawaxab says the raise is done in an effort to anchor inflation expectations as well as safeguard the one-on-one peg arrangement with South Africa.

!Gawaxab says the decision was taken following a comprehensive review of global, regional, and domestic economic developments.

There was a need, he says, to strike a balance between controlling inflation expectations and supporting the domestic economy's recovery.

The Bank of Namibia (BoN) has decided to increase the repo rate by 75 basis points, to 6.5%.

The central bank also warned that inflation, which is the main cause of the repo rate, will persist for a longer period of time, driven by factors beyond Namibia's control.

When the central bank pushes up the repo rate, it does so in response to and to arrest runaway inflation.

These hikes discourage borrowing and reduce the amount of money in the economy, meaning fewer resources to spend.

The Bank of Namibia has decided to increase the repo rate by 75 basis points to 6.25%