The Bank of Namibia’s Monetary Policy Committee (MPC) on Wednesday resolved to keep the repo rate unchanged at 3.75%, BoN Deputy Governor Ebson Uanguta has said.
“The MPC believes that the rate remains appropriate to continue supporting the weak domestic economy that is still being weighed down as another COVID-19 variant triggers renewed restrictions in many parts of the world,” he said.
“At this level, the Repo rate is deemed appropriate to safeguard the one-to-one link between the Namibia Dollar and the South African Rand, while meeting the country’s international financial obligations.”
The MPC’s decision is in line with analysts’ expectations.
Simonis Storm Economist Theo Klein, however, forecasts BoN to hike its repo rate by between 50 and 100 basis points (bps) by the end of next year.
“This was in line with our expectations. We also highlighted that we expect Bank of Namibia to hike its repo rate by between 50 and 100 basis points (bps) by the end of 2022.”
The South African Reserve Bank raised its repo rate by 25 basis points, to 3.75% in November, the first-rate hike in three years.
Namibia’s repo rate is currently on par with South Africa.
