Mining sector continues to bolster economy – repo rate unchanged at 6.75%
Following a review of global, regional and domestic economic and financial developments, the Bank of Namibia decided to maintain the Repo rate at 6.75%.
The central bank this week noted that economic growth in key economies moderated during the first quarter of 2018, compared to the preceding quarter, while monetary policy stances in key economies were generally left unchanged, except for a few central banks which increased interest rates.
Moreover, the domestic economic activity improved during the first six months of 2018 relative to the corresponding period of 2017 and is mainly observed in the mining as well as transport and communication sectors.
“The wholesale and retail trade sector, however, continued to decline, though at a slower pace compared to the corresponding period of 2017. Overall, the domestic economy is expected to grow by 0.6% in 2018 compared to the negative growth registered in 2017,” Iipumbu Shiimi, Governor of the Central Bank said.
Meanwhile, as at 31 July, the preliminary stock of international reserves stood at N$32.6 billion, representing an increase of 9.9% on a monthly basis. At this level, the stock of international reserves is estimated to cover 5.3 months of imports of goods and services, an improvement from 4.7 months reported in the last Monetary Policy Committee statement.