Central bank eases interest rate with 25-basis point cut

The Bank of Namibia (BoN) lowered its main lending rate from 7.50% to 7.25% on Wednesday.

This is the second repo rate cut by the bank this year.

BoN governor Johannes !Gawaxab said following this decision, commercial banks are expected to reduce their prime lending rate by the same magnitude to 11%.

“In discussing the monetary policy stance, the Monetary Policy Committee (MPC) noted the growing momentum in the international monetary policy easing cycle, the retreat in domestic inflation over the medium term, along with the recent downside surprise in the September 2024 inflation print,” !Gawaxab said.

The MPC also noted that the domestic economy, while growing at a moderate pace, was operating below full capacity, with private sector credit extension remaining subdued.

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