Repo rate unchanged at 6.25%

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WINDHOEK – The Bank of Namibia’s Monetary Policy Committee (MPC)yesterday announced that the repo rate will remain at 6.25 percent for the next two months.

The committee reviewed the global, regional and domestic economic and financial developments since the last meeting held on February 17, 2015. The next meeting of the MPC is scheduled for June 16, 2015.

According to Bank of Namibia Governor, Ipumbu Shiimi, developments in the domestic economy point towards improved growth during the first two months of the year, with inflation continuing to decline.

Shiimi pointed out that risks, including low commodity prices and the growing import bill, continue to exert pressure on the country’s reserves. The improvement in the domestic economy was mainly driven by robust public and private construction activities, coupled with strong sales in wholesale and retail trade. Also, diamond mining and manufacturing recorded positive growth.

Shiimi expects the local economy to grow by 5.6 percent this year, up from 5.3 percent last year.

Shiimi warned that risks to domestic growth include weak growth in the country’s major trading partners and low commodity prices.

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