BoN keeps repo rate unchanged at 7.75%
Economic growth forecast revised up
The central bank projects the domestic economy grew by 3.9% in 2023.
For the third consecutive time in 2023, the Bank of Namibia (BoN) decided to keep the repo rate unchanged at 7.75%. This means the prime lending rates for local commercial banks will also remain at 11.50%.
Speaking at the sixth and last monetary policy announcement for the year, central bank governor Johannes !Gawaxab noted that the decision is appropriate to continue safeguarding the peg between the Namibia dollar and the South African rand while supporting the domestic economy.
Domestic economic activity expanded during the first ten months of 2023, although at a slower pace compared to the same period in 2022.
The improvement was observed in the mining, electricity generation, livestock agriculture, wholesale and retail trade, tourism, communication and transport sectors. Activity in the construction sector, however, remained weak, !Gawaxab pointed out.
For the year 2023, gross domestic product (GDP) growth is estimated to decline to 3.9% from 7.6% in 2022, largely on account of slower growth in the primary industry, following the high base set in this industry during 2022. This is an upward revision from a growth of 3.3% forecasted in the previous monetary announcement. Going forward, growth is expected to slow to 3.4% in 2024.
Risks to the domestic economic outlook include weakening global economic growth, tighter global monetary policy, geopolitical tensions, geo-economic fragmentation and the fallout of load-shedding in South Africa.
Moreover, internal risks include the current drought, uncertain rainfall conditions and water supply interruptions, particularly at the coastal towns.
Namibia’s annual inflation rate averaged 6.0% during the first ten months of 2023, slightly up from 5.9% during the corresponding period in 2022. The increase in consumer price inflation was primarily shaped by the rise in the food, housing and miscellaneous goods and services components.
Average inflation is, however, expected to steadily decline to 5.9% in 2023 and 4.8% in 2024, from 6.1% recorded in 2022, he said.– [email protected]
Speaking at the sixth and last monetary policy announcement for the year, central bank governor Johannes !Gawaxab noted that the decision is appropriate to continue safeguarding the peg between the Namibia dollar and the South African rand while supporting the domestic economy.
Domestic economic activity expanded during the first ten months of 2023, although at a slower pace compared to the same period in 2022.
The improvement was observed in the mining, electricity generation, livestock agriculture, wholesale and retail trade, tourism, communication and transport sectors. Activity in the construction sector, however, remained weak, !Gawaxab pointed out.
For the year 2023, gross domestic product (GDP) growth is estimated to decline to 3.9% from 7.6% in 2022, largely on account of slower growth in the primary industry, following the high base set in this industry during 2022. This is an upward revision from a growth of 3.3% forecasted in the previous monetary announcement. Going forward, growth is expected to slow to 3.4% in 2024.
Risks to the domestic economic outlook include weakening global economic growth, tighter global monetary policy, geopolitical tensions, geo-economic fragmentation and the fallout of load-shedding in South Africa.
Moreover, internal risks include the current drought, uncertain rainfall conditions and water supply interruptions, particularly at the coastal towns.
Namibia’s annual inflation rate averaged 6.0% during the first ten months of 2023, slightly up from 5.9% during the corresponding period in 2022. The increase in consumer price inflation was primarily shaped by the rise in the food, housing and miscellaneous goods and services components.
Average inflation is, however, expected to steadily decline to 5.9% in 2023 and 4.8% in 2024, from 6.1% recorded in 2022, he said.– [email protected]
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