By: Samuel Linyondi
In October, the Bank of Namibia (BoN) left the repo unchanged at 7.75%, the highest in the past 14 years.
If a repo rate increases, borrowing becomes more expensive, and product and service prices increase for consumers. The repo rate is one of the monetary tools to either control inflation or stimulate demand.
Conversely, inflation is the rate of price increase over a given period. It is a broad measure of the cost of living in a country.
In one of its monthly reports, IJG Namibia said that Namibia’s annual inflation rate edged up to 6.0% in October from 5.4% year-on-year in September, the highest rate since May 2023.
As a result, the repo rate and inflation influence our spending as we approach the festive season; especially now that most people will receive annual bonuses.
The festive season is when we spend the most on ourselves, holidays, Christmas shopping and New Year celebrations.
With the current challenging economic situation and high inflation rate, bonuses disappear more quickly due to the high cost of living. However, if we plan our bonus and prioritise our expenses, we can see savings in the long run. How can this be achieved?
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