Local banks decrease lending rate by 0.25%
In reaction to the decrease in the policy rate by the Monetary Policy Committee of the Bank of Namibia, Bank Windhoek and Standard Bank Namibia announced the decrease in their Prime Lending Rate by 0.25% from 10.75% to 10.50%.
Bank Windhoek’s Mortgage Lending Rate will decrease from 11.75% to 11.50% and will effect its changes starting 18 August.
“Rates were decreased to maintain the currency peg against the South African rand and support the local economy. The Monetary Policy Committee was mindful that to support a weakened economy, it had to drop its repo rate to commercial banks,” Clair Hobbs said, Chief Treasurer at Bank Windhoek said.
Meanwhile, Standard Bank already put in place changes on Wednesday, when the Bank of Namibia decreased interest rates from 7% to 6.75%.
“The home loan base rate will decrease from 11.75% to 11.50%. The Vehicle and Asset Finance rates will continue to be linked to the prime lending rate and will be re-priced accordingly,” said Surihe Goamas-Guchu, Head of Marketing and Communications at Standard Bank.