Domestic inflationary pressures continued to ease year-to-date – Central Bank
Domestic inflationary pressures continued to ease year-to-date, the central bank said this week during the announcement of the Monetary Policy.
On average, inflation slowed to 4.9% during the first five months of 2024, compared to 6.8% during the same period in 2023.
“The deceleration was predominantly due to lower food inflation. Since the previous MPC meeting, however, monthly annual inflation outcomes have edged up to 4.9% in May 2024, relative to 4.5% for March 2024, attributed to increases in transport and housing inflation” Bank Of Namibia Governor, Johannes !Gawaxab said in a statement.
Going forward, !Gawaxab said average inflation is projected to moderate from 5.9% in 2023 to 4.9% in 2024 and 4.5% in 2025.
Meanwhile, !Gawaxab said the Monetary Policy Committee decided to keep the repo rate unchanged at 7.75%. Likewise, the prime lending rate remains steady at 11.50%.
“This policy stance will continue to safeguard the one-to-one link between the Namibia Dollar and the South African Rand and support domestic economic activity,” he concluded.
