Bank Windhoek announces new interest rates
Bank Windhoek has confirmed the increase of its Prime Lending Rate by 0.25% from 7.75% to 8.00%, while the Mortgage Lending Rate will increase from 8.75% to 9.00%
The interest rate changes were effective from Thursday, 14 April.
According to Diederik Kruger, head of funding and liquidity management at Bank Windhoek, the worldwide inflationary pressure in the aftermath of the pandemic, coupled with geopolitical tension in the northern hemisphere in early 2022, has impacted the supply of goods in first world countries. The concerns surrounding the supply of natural gas and fuel oil has also impacted the price for the consumer and will in the coming months impact the price of all consumer goods that is dependent on long haul transportation.
The SA Reserve bank warned against the inflation pressures and hiked rates since November 2021 to curb the inflation further. The expectations are that rates will continue to increase for the remainder of this year and could be higher than expected if a new wave of lockdowns are introduced or if tensions in the Europe develop further.
“Customers should be mindful of the increasing rates when entering into new loan agreements and plan accordingly.” Kruger said.