By: Josef Kefas Sheehama
The Bank of Namibia is expected to cut its Repo Rate by 0.25 basis points today, which would bring its key lending rate to 7.50% and the prime rate to 11.25%.
This means, Namibia will be 75 basis points behind South Africa.
The decision reflects the central bank’s ongoing view that the current repo rate is appropriate to support the domestic economy and to ease consumer burdens.
Meanwhile, inflationary pressures will further encourage the Bank of Namibia to tighten its monetary policy. Inflation is lower than it was a year ago.
But you may not be feeling any less frustrated when you pay your bills. Although inflation reduces from 7% to 5.40% in 2024, we need to understand that prices across all goods and services haven’t actually gone down. Overall, prices are still high.
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