STAFF WRITER
THE Bank of Namibia has kept the repo rate unchanged at 6.75 percent to sustain the currency peg with the South African Rand and stimulate economic growth.
Announcing the decision on Wednesday the apex bank Governor Johannes !Gawaxab said the decision followed a comprehensive review of current and projected domestic, regional and global economic developments.
“Commercial banks are accordingly expected to maintain their prime lending rates at 10.50 percent. This policy stance will continue safeguarding the one-to-one link between the Namibia Dollar and the South African Rand while supporting domestic economic activity,” !Gawaxab said.
He added that the decision was also made to follow the Common Monetary Area’s (CMA), longstanding practice to keep the prime lending rate within the 3.50 percentage points above the Repo rate.
“This move will address this anomaly and in timeprovide relief to consumers. Given the adjustment that is required on their operating models, the commercial banks will be given specified time frame to align accordingly.
“ In considering the appropriate monetary policy stance, the MPC was wary of the prevailing uncertainty from fundamental global economic and trade policy shifts,” the Governor said.
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