Windhoek’s cost-of-living swallows most residents
ABRAHAM EITA In my recent article on the Bank of Namibia’s repo rate increase, I argued that monetary policy decisions are not just technical matters for economists and bankers. They affect households and borrowers. That discussion has become even more important as Windhoek residents now face another pressure point: the rising cost of basic municipal […]
ABRAHAM EITA
In my recent article on the Bank of Namibia’s repo rate increase, I argued that monetary policy decisions are not just technical matters for economists and bankers.
They affect households and borrowers. That discussion has become even more important as Windhoek residents now face another pressure point: the rising cost of basic municipal services.
Windhoek is becoming more expensive to live in, and the burden is being felt most by ordinary residents.
The Municipal Council of Windhoek has announced an average increase of 4% on services such as water, rates and taxes, sewerage, waste management, refuse removal and the fire brigade levy.
These are not luxury services; they are the basic needs of city life. Before going further, it is useful to explain a few terms in simple language. The repo rate is the interest rate at which the central bank lends money to commercial banks.
When the repo rate rises, banks often increase lending rates, making loans more expensive for households. Inflation means the general increase in prices over time.
