Wednesday, February 22, 2012

Namibian Central Bank Keeps Rate at 6.00%

The Bank of Namibia kept its benchmark interest rate, the repurchase rate, unchanged at 6.00%, for the 7th consecutive meeting.  Bank of Namibia Governor Ipumbu Shiimi said: "In view of the need to ensure a sustained growth in the domestic economy, the MPC is of the view that a tightening of the monetary policy stance at this stage might be premature and thus detrimental to the growth prospects."

The Namibian central bank also held its interest rate unchanged at its December meeting, after dropping the rate 75 basis points in December 2010.  Namibia reported annual inflation of 7.2% in December, up from 6.1% on October, 5.3% in September, compared to 5.4% the previous month, 4.8% in July, 5.4% in June, 5.2% in May, and 4.8% in April.  Namibia's currency is fixed against neighboring South Africa's rand (ZAR), thus the Namibian central bank tends to follow the monetary policy decisions of the South African Reserve Bank.


  1. Perhaps the inflation is due to the rising costs of imported goods, while the costs of commodities is steady?

  2. If in doubt, and if the SARB holds pat, then do nothing...