No rise in rates

THE Bank of Namibia (BoN) has decided to keep its repo rate steady at nine per cent, after considering the current economic developments, which include a slowing inflation rate.

“The MMC (Monetary Policy Management Committee) felt that an increase in the Bank rate this time would run the risk of excessively depressing domestic demand, which may affect real sector growth,” BoN Deputy Governor Paul Hartmann said yesterday. December inflation remained steady at 6,1 per cent – the same as November – and actually went down to six per cent in January.The recent fuel price cuts were said to have contributed to the slowdown in inflation.Hartmann said the central bank would keep closely monitoring inflation.”While the easing of inflationary pressures is a welcome development, the level of inflation remains a concern when compared with the level that prevailed a year ago,” he said, adding that inflation stood at only 3,6 per cent in January last year.Hartmann said despite tighter monetary conditions since the latter half of last year – marked with a number of rate hikes – major economic sectors, like mining, actually picked up during the fourth quarter.Positive economic output also came from mining and quarrying, especially from diamonds, uranium, silver and copper.According to the BoN, this performance was attributable to an upsurge in global demand and strong commodity prices.However, the agricultural sector maintained its downward trend and recorded a poor performance due to a continued decrease in livestock marketing.December inflation remained steady at 6,1 per cent – the same as November – and actually went down to six per cent in January.The recent fuel price cuts were said to have contributed to the slowdown in inflation.Hartmann said the central bank would keep closely monitoring inflation.”While the easing of inflationary pressures is a welcome development, the level of inflation remains a concern when compared with the level that prevailed a year ago,” he said, adding that inflation stood at only 3,6 per cent in January last year.Hartmann said despite tighter monetary conditions since the latter half of last year – marked with a number of rate hikes – major economic sectors, like mining, actually picked up during the fourth quarter.Positive economic output also came from mining and quarrying, especially from diamonds, uranium, silver and copper.According to the BoN, this performance was attributable to an upsurge in global demand and strong commodity prices.However, the agricultural sector maintained its downward trend and recorded a poor performance due to a continued decrease in livestock marketing.