BoN likely to keep rates unchanged – economist
MPC set to meet later this week
The repo rate is projected to remain steady for the rest of the year, according to a Namibian economist.
FNB Namibia economist Cheryl Emvula expects the Bank of Namibia (BoN) to keep the repo rate unchanged at 6.75% when its Monetary Policy Committee (MPC) meets later this week to decide on borrowing costs.The central bank last maintained the rate at its June meeting, a move Emvula says underscores BoN’s commitment to preserving the Namibia dollar’s peg to the South African rand while supporting domestic economic stability and aligning with global and regional policy trends.
The MPC has also highlighted external risks, such as global trade uncertainty and the ongoing conflict in the Middle East, which could fuel global inflationary pressures.
“Looking ahead, the repo rate is likely to remain steady for the rest of the year. The BoN will also seek to close the 25-basis-point interest rate gap with South Africa to help maintain stable capital flows,” Emvula said.