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Repo rate hiked by 50 bps, now at 6.75%

Repo rate hiked by 50 bps, now at 6.75%

The Bank of Namibia’s (BoN) Monetary Policy Committee (MPC) decided to hike the repo rate by 50 basis points on Wednesday to 6.75% from 6.25%.

The central bank governor, Johannes !Gawaxab said the decision was taken to contain inflationary pressure and its second-round effect.

“It was also deemed appropriate to safeguard the one-to-one link between the Namibian dollar and the South African rand,” he said.

!Gawaxab meanwhile said the overall inflation for 2022 is now projected to average around 6.1% before slowing to 4.9%.

Furthermore, !Gawaxab said the BoNT is currently revising its economic growth forecast for 2022 upwards from its previous estimate of 3.2%.

The latest estimates for growth in 2022 contrast favourably against the growth rate of 2.7% recorded in 2021 he noted.


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