Repo rate remains unchanged

21 October 2020 | Economics

The Bank of Namibia (BoN) announced that the repo rate would remain unchanged at 3.75%, governor Johannes !Gawaxab said at the Monetary Policy Announcement in the capital on Wednesday.
!Gawaxab said that it remains appropriate to continue supporting domestic economic activity while safeguarding the one-to-one link between the Namibia dollar and the South African rand.
“Domestic economic activity contracted during the first eight months of 2020 and is projected to register an overall contraction in 2020, before an expected modest recovery in 2021. Inflation declined during the first nine months of 2020 and is projected to remain subdued for the rest of 2020 and 2021. The rate of growth in the Private Sector Credit Extension (PSCE) declined during the first eight months of 2020,” !Gawaxab said.
He added that the stock of international reserves remained sufficient to support the currency and the contraction was mainly reflected in sectors such as mining, manufacturing, tourism, wholesale and retail trade as well as transport and storage. Activity in the telecommunications and local electricity generation subsectors improved during the same period.
Going forward, the domestic economy is projected to contract by 7.8% in 2020, before a moderate recovery of 2.1% in 2021,!Gawaxab said. – Nampa