Simonis Storm expects October hike
The Bank of Namibia (BoN) has kept its repo rate unchanged at 6.75%, in line with expectations, while maintaining the prime lending rate at 10.50%.
CHAMWE KAIRA
The Bank of Namibia (BoN) has kept its repo rate unchanged at 6.75%, in line with expectations, while maintaining the prime lending rate at 10.50%.
The decision follows the central bank’s 25-basis-point rate increase in June, which was implemented ahead of the South African Reserve Bank (SARB) to protect the interest-rate differential supporting the Namibia dollar’s peg to the South African rand.
Simonis Storm said the decision marked the first pause since the June increase and was consistent with its expectations ahead of the monetary policy announcement.
According to the research firm, the decision to hold was supported less by the headline inflation rate and more by the composition of price increases.
