Bank rate unchanged

THE Bank of Namibia (BoN) on Thursday kept its repo rate unchanged at seven per cent because of domestic economic developments, as the economy registered improved performance in the first quarter of the year.

In a monetary policy statement, BoN governor Tom Alweendo said domestic inflation was continuing its downward trend with the annual inflation rate for April having decreased slightly to 1,6 per cent from 1,7 per cent in March and 2,6 per cent in February. The economy between January and April had performed well with improvements noted in the key real sector indicators such as livestock marketed and diamond output.Global economic conditions were also said to be improving, mainly on account of the prevailing low interest rate environment.”After taking cognisance of all domestic economic developments, the Bank of Namibia has decided to keep the bank rate unchanged at seven per cent.The Bank of Namibia will continue to monitor domestic and international economic developments closely and will make the necessary adjustment in the bank rate to achieve the objective of price stability in Namibia when it is deemed necessary,” said Alweendo.Alweendo said the trend of exchange rate depreciation, which saw the Namibia dollar reaching a level of N$6,9 to the US dollar this month, could pose a risk to inflationary expectations.However, it would augur well in the future for the export industry.The economy between January and April had performed well with improvements noted in the key real sector indicators such as livestock marketed and diamond output.Global economic conditions were also said to be improving, mainly on account of the prevailing low interest rate environment.”After taking cognisance of all domestic economic developments, the Bank of Namibia has decided to keep the bank rate unchanged at seven per cent.The Bank of Namibia will continue to monitor domestic and international economic developments closely and will make the necessary adjustment in the bank rate to achieve the objective of price stability in Namibia when it is deemed necessary,” said Alweendo.Alweendo said the trend of exchange rate depreciation, which saw the Namibia dollar reaching a level of N$6,9 to the US dollar this month, could pose a risk to inflationary expectations.However, it would augur well in the future for the export industry.