Following the increase in the policy rate by the Monetary Policy Committee of the Bank of Namibia, Bank Windhoek has announced an increase in its prime lending rate of 0.25 percent from 10.00 percent to 10.25 percent.
The mortgage lending rate will increase from 11.00 percent to 11.25 percent.
These interest rate changes will be effective from Monday, June 22, 2015.
According to Claire Hobbs, Chief Treasurer at Bank Windhoek, the Bank of Namibia again highlighted its concern about the high growth in household debt in the instalment credit segment.
The 0.25 percent increase is a signal to households to reduce their debt and rather begin taking advantage of the resultant higher deposit rates by starting to save.