Bank of Namibia reduces repo rate to 7.25%, offering relief to consumers

The Bank of Namibia has announced a 25 basis point reduction in the repo rate, bringing it down to 7.25 percent. This decision follows an extensive review of domestic, regional, and global economic conditions. Speaking at the monetary policy announcement, BoN Governor Johannes !Gawaxab emphasized the need to moderate monetary restrictions due to slowing economic growth and declining inflation.

“Domestic economic activity rose during the first eight months of 2024, but growth slowed on both a quarterly and yearly basis in the second quarter,” !Gawaxab said. He further said that inflation has receded notably, with the medium-term inflation forecast being revised downward.

To provide additional insight, Cirrus Capital economist Robert McGregor said inflation has dramatically slowed, thanks to lower fuel prices and moderating food inflation. He added, “The decision provides relief to consumers who are still under strain, although the outlook is improving.”