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Repo rate increases to 6.25%

Repo rate increases to 6.25%

The central bank governor, Johannes !Gawaxab on Wednesday announced the decision by the Monetary Policy Committee to increase the repo rate by 75 basis points to 6.25%.

“The decision was taken with due consideration of the persistent inflationary pressures and 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,” he said

Furthermore, he said this decision was taken following a comprehensive review of global, regional, and domestic economic developments.

!Gawaxab meanwhile said Namibia’s overall inflation for 2022 is now projected to average around 6.1%, up from 5.8 percent initially projected during the previous MPC meeting.

“The upward revision is mainly due to expected higher food inflation and a weaker exchange rate,” he said.


 

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