Chart of the Week
The Bank of Namibia’s Monetary Policy Committee cut the repo rate by 25 basis points to 6.5%, widening the interest rate spread with South Africa to 50 basis points.The decision considered weaker domestic economic activity, with real GDP growth slowing to 1.6% year-on-year, the lowest since the pandemic; as well as cooling inflation and a favourable medium-term outlook.
While foreign reserves face pressure ahead of the Eurobond redemption, the Bank notes that adequate preparation has ensured reserve adequacy remains intact.
*Tannan Groenewald is the head of data and analytics at Cirrus Capital.**