The Bank of Namibia has kept the bank rate unchanged at 10.5 per cent for the third time this year, providing welcome relief to consumers in the face of rising inflation. The announcement will see commercial banks once again keep the prime lendin g rate stable. Paul Hartmann, the bank’s deputy governor, said it is reassuring to note that the real sector is performing quite well under fairly difficult circumstances; the fiscal situation is healthy and supportive of monetary policy, and the current account of the balance of payments continues to record strong surpluses.
He added that having considered all factors, the Bank of Namibia has decided to keep the bank rate unchanged at 10.5 per cent, nothing that inflation was still the main challenges as it was increasing and showed an upward trend.The annual inflation rate rose to 9.7 per cent in may from 9.3 per cent in April this year, and from 8.4 per cent in March.
This surge has been attributed to rising and volatile international crude oil prices and the high food proces. Other factors are also at play as Hartmann explained:” In Namibia, inflation originating from source other than food and fuel has risen at a slower rate than overall inflation.
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