Interest rates

Namibia raises interest rates | foreign brief

The Bank of Namibia will announce today an increase in interest rates. Namibia’s current interest rate is 4% and will likely increase

The Bank of Namibia is raising interest rates today. Photo: Pan-African visions

The Bank of Namibia will announce today an increase in interest rates.

Namibia’s current interest rate is 4% and will likely increase to 4.50% in response to record levels of inflation linked to rising prices in the transport, fuel and food sectors.

Recently, Namibia has seen an upward trend in interest rates this year, in line with South African monetary policy. Namibia’s heavy reliance on its mining industry makes it vulnerable to external shocks. The coupling of its currency to the rand offers the Namibian economy stability but also forces the country to emulate South African monetary policies. At the height of the pandemic, Namibia followed Johannesburg by maintaining interest rate at 3.75%. In February, however, Namibia raised its benchmark interest rate for the first time since April 2016 by 25 points to the current rate of 4%, in line with South Africa.

Higher interest rates could be an indication of a return to relative economic normality in the region, as the Bank of Namibia has predicted GDP growth of 3.4% for 2022. For its monetary policy, Namibia will likely continue to reflect South African monetary policy in the near term. term, or until a time that is able to return to pre-pandemic levels.

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