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Namibia's Central Bank Cuts Interest Rate By 50 Bps To 5.5%

By RTTNews Staff Writer   ✉  | Published:  | Google News Follow Us  | Join Us
rttnewslogo20mar2024

Namibia's central bank on Wednesday decided to reduce its policy interest rate in order to support ailing sectors of the economy and to further shore up the subdued growth outlook.

The monetary policy committee of the Bank of Namibia lowered the benchmark interest rate by 50 basis points to 5.5 percent.

The bank said that inflation will remain within tolerable ranges in the foreseeable future, though some upside risks lingers on account of looming higher international oil and food prices. A possible appreciation of the Namibian dollar may counter some of the inflationary impact stemming from the referred pressures.

Namibia's consumer price inflation accelerated to 6 percent in July from 5.6 percent in June, largely reflecting higher food and utility prices and an increase in housing costs.

A slowdown of external demand is likely to put pressure on the country's export earnings and overall GDP growth going forward, the bank said.

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