Namibia leaves rate steady, cuts 2021 inflation forecast

     Namibia's central bank left its benchmark interest steady and while it lowered its forecast for inflation this year, it also "noted the increasing trend in inflation globally and recognized its potential impact on monetary policy going forward."
     The Bank of Namibia's (BoN) monetary policy committee (MPC) kept its repo rate at 3.75 percent, unchanged since August 2020 when it was cut for the fifth time last year to support the economy from the negative impact on activity during the COVID-19 pandemic.

     "The MPC is of the view that at 3.75 percent, the Repo rate remains appropriate to continue supporting the weak domestic economy that is still being weighed down by the COVID-19 pandemic," the bank said, adding the current level of the repo rate also safeguards the one-to-one link between the Namibian dollar and the South African Rand.

     Namibia's inflation rate averaged 3.5 percent in the first 9 months of the year, up from 2.2 percent in the same 2020 period, mainly due to base effects, food and transport prices.

     But after rising in the first half of the year, inflation has eased since July, falling to 3.5 percent in September from June's 4.1 percent. Inflation was 3.4 percent in August.

       The central bank lowered its forecast for inflation to average 3.7 percent in 2021 from a previous forecast of 3.9 percent, and omitted a reference in its August policy statement to the risk to the sustainability of the current repo rate from higher inflation. 

     Last year BoN cut its repo rate 5 times and by a total of 2.75 percentage points, slightly less than South Africa's 3.0 percentage point reduction.

     Namibia's current easing cycle began in August 2017 and since then BoN has lowered the rate 3.25 percentage points, also slightly less than the South African Reserve Bank (SARB), which has lowered its rate 3.50 percentage points since July 2017.
     "Namibia's real GDP improved in the second quarter of 2021, while economic activity remained subdued year-to-date," the bank said, adding inflation has continued to rise while growth in private sector credit expansion (PSCE) has declined.

     Namibia's gross domestic product grew 1.6 percent year-on-year in the second quarter, the first positive result after 5 consecutive quarters of contraction.
      BoN forecast growth this year of 1.4 percent and 3.4 percent in 2022,  with risks to the outlook from sudden surges in the pandemic and disruptions to economic activity from restrictions.

      Namibia's inflation rate averaged 3.5 percent in the first 9 months of the year, up from 2.2 percent in the same 2020 period, mainly due to base effects, food and transport prices.
      The central bank forecast average inflation of 3.7 percent in 2021, slightly lower than the previous forecast of 3.9 percent. 

     Growth in PSCE eased to an average of 2.5 percent in the first 8 months of this year, down from 4.1 percent in the same period last year, due to lower demand for credit by both businesses and households.

     www.CentralBanksNews.info

     

This week in monetary policy: Indonesia, Hungary, Namibia, China, Mauritius, Uzbekistan, Ukraine, Turkey, Botswana, Paraguay, Tajikistan & Russia

     This week - October 18 through October 23 - central banks from 12 countries or jurisdictions are scheduled to decide on monetary policy: Indonesia, Hungary, Namibia, China, Mauritius, Uzbekistan, Ukraine, Turkey, Botswana, Paraguay, Tajikistan and Russia.

     Following table includes the name of the country, the date of the next policy decision, the current policy rate, the local time a policy decision is announced, the result of the last policy decision, the change in the policy rate year to date, and the rate one year ago.
    The table is updated when the latest decisions are announced and can always be accessed by clicking on This Week.

WEEK 42
OCT 18 - OCT 23, 2021
INDONESIA	19-Oct	3.50%		0	-25	4.00%	EM
HUNGARY	19-Oct	1.65%		15	105	0.60%	EM
NAMIBIA	19-Oct	3.75%		0	0	3.75%
CHINA	20-Oct	3.85%	9:30	0	0	3.85%	EM
MAURITIUS	20-Oct	1.85%		0	0	1.85%	FM
UZBEKISTAN	21-Oct	14.00%	14:30	0	0	14.00%
UKRAINE	21-Oct	8.50%	14:00	50	250	6.00%	FM
TURKEY	21-Oct	18.00%	14:00	-100	100	10.25%	EM
BOTSWANA	21-Oct	3.75%		0	0	3.75%
PARAGUAY	21-Oct	1.50%		50	75	0.75%
TAJIKISTAN	22-Oct	13.00%			225	10.75%
RUSSIA	22-Oct	6.75%	13:30	25	250	4.25%	EM

 
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2021 Global Central Bank Monetary Policy Calendar - adds Namibia and Paraguay

     Herewith the third draft of the 2021 calendar of meetings by central bank committees that decide monetary policy, which adds the full-year schedules for Namibia and Paraguay. It also includes the January meeting for Pakistan and the February meeting for Rwanda.
     In future, the calendar will only be updated on the Calendar page on the Central Bank News website.

    

     The following table includes the date for scheduled monetary policy meetings for more than 70 of the world's central banks. In the event policy meetings take place over multiple days, the date listed below is for the final day when decisions are normally announced.

     During the year, the calendar is regularly updated as some times a previously announced date is changed and in other cases monetary policy committees only announce the date for upcoming meetings a few weeks in advance or decide on a date during the prior meeting.

     Readers are encouraged to check the latest version by clicking here.

     You may replicate the calendar in part or in fully only if you link to Central Bank News.

DATE	FX CODE	COUNTRY	CENTRAL BANK
JANUARY
4-Jan	ILS	Israel	Bank of Israel
8-Jan	RON	Romania 1)	National Bank of Romania
13-Jan	PLN	Poland	National Bank of Poland
14-Jan	RSD	Serbia	National Bank of Serbia
14-Jan	PEN	Peru	Central Reserve Bank of Peru
15-Jan	KRW	South Korea	Bank of Korea
19-Jan	LKR	Sri Lanka	Central Bank of Sri Lanka
20-Jan	CNY	China	People's Bank of China
20-Jan	MYR	Malaysia	Central Bank of Malaysia
20-Jan	CAD	Canada	Bank of Canada
20-Jan	BRL	Brazil	Central Bank of Brazil
21-Jan	JPY	Japan	Bank of Japan
21-Jan	IDR	Indonesia	Bank Indonesia
21-Jan	NOK	Norway	Norges Bank
21-Jan	UAH	Ukraine	National Bank of Ukraine
21-Jan	UZS	Uzbekistan	Central Bank of the Rep. of Uzbekistan
21-Jan	EUR	Euro area	European Central Bank
21-Jan	TRY	Turkey	Central Bank of Republic of Turkey
21-Jan	ZAR	South Africa	South African Reserve Bank
21-Jan	PYG	Paraguay	Central Bank of Paraguay
22-Jan	PKR	Pakistan	State Bank of Pakistan
25-Jan	KZT	Kazakhstan	National Bank of Kazakhstan
25-Jan	KGS	Kyrgyzstan	National Bank of the Kyrgyz Republic
26-Jan	HUF	Hungary	Central Bank of Hungary
26-Jan	NGN	Nigeria	Central Bank of Nigeria
27-Jan	KES	Kenya	Central Bank of Kenya
27-Jan	MZN	Mozambique	Bank of Mozambique
27-Jan	USD	United States	Federal Reserve
27-Jan	CLP	Chile	Central Bank of Chile
28-Jan	AOA	Angola	Bank of Angola
29-Jan	AZN	Azerbaijan	Central Bank of Azerbaijan Republic
29-Jan	MDL	Moldova	National Bank of Moldova
29-Jan	MWK	Malawi	Reserve Bank of Malawi
29-Jan	BGN	Bulgaria	Bulgarian National Bank
29-Jan	COP	Colombia	Central Bank of Colombia

Namibia holds rate 2nd time, sees lower GDP decline

     Namibia's central bank left its benchmark interest rate steady for the second time and raised its forecast for economic growth this year and 2021 while maintaining its forecast for inflation.
     The Bank of Namibia (BON) kept its repo rate at 3.75 percent, steady since August when it cut it for the fifth time this year to counter the severe contraction in economic activity.

     BON has cut its policy rate by a total of 275 basis points in 2020, slightly less than South Africa's 300-point rate reduction.

      Namibia's current monetary easing cycle began in August 2017 and since then BON has lowered the rate 325 basis points. Since July 2017 the South African Reserve Bank has cut its rate 350 points.

      While the aim of Namibia's central bank's is price stability, its monetary policy framework is underpinned by a fixed exchange rate regime, with the Namibian dollar pegged at a one-to-one rate to South Africa's rand to ensure stable import prices and thus inflation.

      Although this peg limits the monetary independence of BON, there is a some stickiness in capital movements, which gives it some discretionary powers to maintain its repo rate a slightly different rate than South Africa and control domestic credit and money supply.

     "The MPC is of the view that the rate remains appropriate to continue supporting domestic economic activity, while at the same time safeguarding the one-to-one line between the Namibia dollar and the South African Rand," the bank said of the decision by its monetary policy committee.

    Although economic activity in Namibia showed some positive signs of recovery in the third quarter, it has declined in the first 10 months of this year compared with last year and is set to contract by a record amount this year due to the impact of COVID-19.

    Namibia's gross domestic product shrank by an annual 11.1 percent in the second quarter of this year, up from a 1.8 percent contraction in the first quarter.

     Average growth in private sector credit extension (PSCE) declined to 3.6 percent in the first 10 months of the year from 6.8 percent growth in the same 2019 period, with growth in credit to businesses slowing to 0.8 percent from 8.7 percent last year.

     Since the previous monetary policy meeting in October, the central bank said growth in PSCE slowed to 1.4 percent at the end of October from 2.6 percent in August.

    In 2019 Namibia's economy shrank 1.4 percent and BON forecast the economy would contract another 7.3 percent this year, slightly better than the 7.8 percent contraction forecast in its October economic outlook.

     In 2021 the economy is seen expanding by 2.6 percent, up from the October forecast of 2.1 percent.

     Namibia's inflation rate has remained stable this year and eased to 2.3 percent in October from 2.4 percent in the previous two months for an average rate of 2.2 percent in the January-October period, down from 4.0 percent in the same 2019 period, mainly due to lower transport and housing inflation.

     BON forecast average inflation of 2.3 percent this year and as of Nov. 30 the stock of international reserves dropped to N$29.9 billion from N$32.7 billion in October but still enough to cover 4.5 months of imports and sufficient to protect the currency peg, BON said.

     www.CentralBankNews.info

Namibia cuts rate 5th time as economy shrinks

    Namibia's central bank cut its benchmark interest rate for the 5th time this year as economic activity has contracted severely, credit growth has slowed and inflation remains at historic lows.

    Bank of Namibia (BON) lowered its repo rate by another 25 basis points to 3.75 percent and has now cut it by 275 points this year, still less than South Africa's rate total rate cuts of 300 points following the South African Reserve Bank's latest cut in July.

     "The MPC (monetary policy committee) is of the view that at 3.75 percent, the repo rate is appropriate to support domestic economic active while at the same time safeguarding the one-to-one link between the Namibia dollar and the South African rand," the central bank said, adding:

     "The MPC had to balance the need for further monetary stimulus in the face of the COVID-19 pandemic-induced weakness of the economy, against the importance to not undermine sound saving and investment decisions in the economy."

     As of July 31, Namibia's stock of international reserves rose to N$35.4 billion from N$33.7 billion at the end of June, enough to cover 5.3 month of imports.

     Namibia's gross domestic product shrank 2.59 percent in the first quarter from the previous quarter for a year-on-year decline of 0.8 percent and the central bank forecast a contraction of 7.8 percent this year before recovering a moderate 2.1 percent in 2021.

     "The slump was reflected in sectors such as mining, agriculture, manufacturing, construction, tourism, wholesale and retain trade as well as transport and storage," BON said, adding local electricity generation and telecommunications had showed some improvement from last year.

     Namibia's inflation rate was steady at 2.1 percent in July, June and May for an average of 2.1 percent in the first seven months of this year, down from 4.3 percent in the same 2019 period.

     BON projected average inflation this year of around 2 percent.

     Average growth in private sector credit expansion declined to 4.7 percent in the first six months of this year, down from 6.9 percent in the same period of last year, as growth of credit to businesses only grew 2.2 percent in that period, the bank said.

     www.CentralBankNews.info

    

Namibia cuts rate 4th time in 2020 as economy shrinks

    Namibia's central bank lowered its benchmark repo rate for the fourth time this year, saying this decision balances the need for further monetary stimulus in the face of the pandemic-induced weakness in the economy against the importance of not undermining savings and investment decisions.
    The Bank of Namibia (BON) cut its rate by another 25 basis points to 4.0 percent and has now cut it by 250 points this year, less than the South African Reserve Bank (SARB), which has cut its key rate by 275 points.
    Namibia pegs its Namibian dollar to South Africa's rand at a one-to-one rate, which means it typically tracks changes in South Africa's monetary policy.
     "The MPC (monetary policy committee) is of the view that at 4.00 percent the repo rate is appropriate to support domestic economic activity while at the same time safeguarding the one-to-one link between the Namibia dollar and the South African rand," BON said.
     As of May 31, Namibia's stock of international reserves had risen to N$33.7 billion from 33.0 billion on March 31, enough to cover 5.1 months of imports.
     Economic activity in Namibia contracted in the first four months of the year as compared with last year, affecting mining, manufacturing, wholesale and retail trade, transport and tourism sectors, and BON said it expects the economy to contract further in 2020.
     In the first quarter of this year Namibia's gross domestic product shrank 2.59 percent from the previous quarter for an annual contraction of 0.8 percent, while average growth in private sector credit expansion (PSCE) slowed to 5.8 percent in the first four months, down from 6.4 percent year-on-year.
     Last year Namibia's economy contracted by 1.1 percent due to severe drought and weak mining activity and the government has forecast a 6.6 percent contraction this year.
     Inflation in Namibia rose to 2.1 percent in May from 1.6 percent in April and is projected to average around 2 percent this year, BON said, adding the average inflation rate in the first 5 months of this year was 2.1 percent as compared with 4.4 percent in the same period last year.
    Today's policy decision is the first under the central bank's new governor, Johannes Gawaxab, who took over on June 1 as the bank's third governor since its founding in 1990.
     Gawaxab succeeded Ipumbu Shiimi, who served for 10 years as BON governor and was appointed finance minister in March.
     In addition to the role of governor, Gawaxab will also chair the bank's board of directors.
     On assuming his job, Gawaxab was quoted as saying he believes the bank's mandate is more than just monetary policy and financial stability but also on delivering on an economy that provides prosperity to Namibia.

     www.CentralBankNews.info
   
   

Namibia cuts rate 3rd time to support weak economy

     Namibia's central bank cut its benchmark repo rate for the second time in less than a month and for the third time this year, saying this was to "support weak domestic activity and provide short-term relief amid the extraordinary circumstances arising from the Covid-19 pandemic."
      Bank of Namibia (BON) cut its rate by a further 100 basis points to 4.25 percent and has cut it by 225 points this year following cuts in February and on March 20.
      "At its new level, the repo rate will provide some short-term relief to borrowers," BON said.
     BON has been lowering its rate since August 2017 and has now cut it four times since then by a total of 275 basis points.
      BON, which pegs its Nambian dollar to South Africa's rand, said the rate cut would not compromise the one-to-one link between the currencies.
     On Tuesday the South African Reserve Bank (SARB) cut its policy rate for the second time in less than a month and for the third time this year as it upped its forecast for economic contraction in 2020.
     This year SARB has cut its repo rate by a total of 225 basis points to 4.25 percent.
     Namibia's economy and inflation slowed in the first quarter of this year while growth in private sector credit extension (PSCE) remains subdued, BON said, adding its stock of international reserves remain sufficient to protect the currency peg and meet international financial obligations.
     As of March 31, reserves rose to N$33.0 billion from N$32.2 billion on Feb. 29, enough for 5.3 months of imports.
     The slowdown in economic activity was mainly seen in the mining, wholesale and retail trade, manufacturing and tourism sectors, with tourist arrivals falling sharply. Transport and storage sectors, however, still showed positive growth.
     "Preliminary estimates indicate that the domestic economy will contract significantly in 2020," BON said, adding average growth in PSCE in the first two months rose 6.7 percent, but since the previous MPC meeting the annual growth declined further to 6.1 percent at the end of February from 7.2 percent in December 2019.
      In 2019 Nambia's economy shrank 1.1 percent due to severe drought and weak mining activity.
     Average inflation in the first three months of this year eased to 2.4 percent from 4.5 percent last year and is forecast to average below 3.0 percent in 2020, BON said.

     www.CentralBankNews.info

   

This week in monetary policy: Indonesia, Canada, Namibia and Peru

    This week - April 12 through April 18 - central banks from 4 countries or jurisdictions are scheduled to decide on monetary policy: Indonesia, Canada, Namibia and Peru.

    Following table includes the name of the country, the date of the next policy decision, the current policy rate, the result of the last policy decision, the change in the policy rate year to date, and the rate one year ago.

    The table is updated when the latest decisions are announced and can always accessed by clicking on This Week.

WEEK 16
APR 12 - APR 18, 2020:
INDONESIA	14-Apr	4.50%	-25	-50	6.00%	EM
CANADA	15-Apr	0.25%	-50	-150	1.75%	DM
NAMIBIA	15-Apr	5.25%	-100	-125	6.75%
PERU	16-Apr	2.25%	0	0	2.75%	EM

    www.CentralBankNews.info

Namibia cuts rate 25 bps to boost growth, keep rand peg

     Namibia's central bank cut its benchmark repo rate by another 25 basis points to 6.25 percent, its third rate cut in the current easing cycle, saying this is "to support domestic economic activity and to maintain the one-to-one link between the Namibia Dollar and the South African Rand."
      Bank of Namibia's (BOM) rate cut follows that of the South African Reserve Bank's surprise rate cut on Jan. 16 in response to a lower inflation forecast and an improved risk profile.
      Namibia's central bank has now cut its rate three times by a total of 75 basis points since it began easing in August 2017 and twice since August 2019
      The Namibian dollar trades in a one-to-one rate to the volatile South African rand, which has fallen this year, reversing some of the rise seen from August 2019 to the end of the year.
      "The stock of international reserves remained sufficient to support the currency peg," BOM said, adding international reserves were N$31.0 billion as of Jan. 31, down from N$32.5 billion as of Oct. 31, 2019. enough to cover 4.4 months imports.
      Namibia's inflation rate has declined steadily since April last year to average 3.7 percent in 2019 from 4.3 percent in 2018.
      In January inflation fell further to 2.1 percent as inflation for housing rents turned negative, the central bank said, forecasting average inflation in 2020 of below 5.0 percent.
      "Domestic economic activity contracted in 2019 relative to 2018," BOM said, adding growth in private sector credit extension (PSCE) had risen marginally to 6.8 percent during 2019 from 6.3 percent in 2018, with growth to individuals slowing and rising slightly to retail, real estate, financial and other service sectors.
      In the third quarter of 2019 Namibia's gross domestic product shrank an annual 0.8 percent, the fourth quarter of contraction on an annual basis, but up from a contraction of 2.9 percent in the second quarter.
     In December BOM said the contraction was mainly seen in the mining, and wholesale and retail trade sectors, with the weak performance of mining due to lower output of diamonds, uranium and zinc concentrate.
      "The domestic economy is projected to improve in 2020," BOM said today, noting transport and construction sectors had improved in 2019.

    www.CentralBankNews.info

Namibia maintains rate as economy slows in 2019

     Namibia's central bank left its benchmark repo rate unchanged at 6.50 percent, saying domestic economic activity slowed in the first 10 months of the year, inflation remains low but the stock of international reserves continues to be sufficient to support the currency peg with South Africa.
     The Bank of Namibia (BON), which cut its rate in August by 25 basis points for the first time since August 2017, added the economic slowdown was mainly reflected in mining, manufacturing, construction, wholesale and retail trade, and agriculture.
     "Going forward, the domestic economy is projected to remain weak in 2019," BON said.
     In August the central bank forecast contraction of 1.7 percent this year before returning to growth in 2020. The economy shrank by an estimated 0.1 percent in 2018.
     Namibia's gross domestic product contracted by an annual 2.6 percent in the second quarter of this year, slightly better than a 2.9 percent shrinkage in the first quarter, hit by lower mining and diamond output, while drought has lowered agricultural output.
     Amid strong growth in 2010-2015 fueled by rapid credit growth, Namibia's public debt rose sharply and international reserves fell.
     Although the government is now adjusting its fiscal policy, public debt remains on a rising path and banks' asset quality has deteriorated, according to the International Monetary Fund in September.
     Namibia's economy has been in a slump since the start of 2017, with GDP on an annual basis contracting in the last 9 of 10 quarters. The second quarter of 2018 was the last quarter to show positive annual growth of 0.6.
     "A likely slow recovery, the need for further fiscal adjustment to bring public debt to a sustainable path, persistent inequalities and structural impediments to growth, point to a challenging outlook," IMF said, adding absent structural reforms growth is expected to converge to a long-term level of 3 percent,  which is took low to deliver meaningful improvements in income and reduce unemployment.
     The IMF forecast a 0.2 percent decline in GDP this year and then growth of 1.6 percent in 2020.
     Growth in private sector credit rose marginally to 6.8 percent in the first 10 months of the year from 6.2 percent in the same 2018 period, mainly due to higher uptake of credit in retail, real estate, financial and other services sectors.
     But growth in credit to individuals slowed from last year and in October the annual growth in private sector credit extension was unchanged at 6.4 percent.
     Namibia's inflation rate has been trending lower since 2017 and fell to a 2019-low of 3.0 percent in October, down from 3.3 percent in September, and the recent peak of 5.6 percent in November 2018.
     BON projected average inflation of 3.8 percent in 2019, below IMF's estimate of 4.8 percent.
     Namibia's stock of International reserves was practically unchanged at N$32.5 billion from N$32.3 billion at the previous meeting of its monetary policy committee, enough to cover 4.3 months of imports, a level the central bank said was "sufficient to protect the peg" of the Namibia dollar to the South African rand and meet its international financial obligations.

    www.CentralBankNews.info
   

Namibia cuts rate 1st time in 2 years as economy slows

     Namibia's central bank lowered its benchmark repo rate by 25 basis points to 6.50 percent, saying economic growth, inflation and growth in credit to individuals slowed during the first six months and "key risks to the global outlook remain, amongst others, escalating trade and geopolitical tensions and higher policy uncertainty across many countries, including Brexit."
     It is Bank of Namibia's (BON) first rate cut since August 2017 and brings the rate back to its level in January 2016 before the central bank embarked on a tightening cycle that lasted 17 months.
     The bank's monetary policy committee said the decision to cut the rate was "to support domestic economic activity and to maintain the one-to-one link between the Namibia Dollar and the South African Rand."
     Since BON's previous policy meeting in June, the South African Reserve Bank (SARB) on July 18 lowered its policy rate by 25 basis points, its first cut since March 2018 and one of 31 central banks that lowered their rates in the third quarter of this year in response to slowing global growth.
     As of July 31, Namibia's stock of international reserves rose to N$35.2 billion from N$34.1 billion in June, enough to cover 4.8 months of imports, and a level BON said was sufficient to protect the peg of the Namibia Dollar to the Rand and to meet its international financial obligations.
     The Namibian dollar trades at a rate of 1:1 to the rand, which has fallen against the U.S. dollar since SARB's rate cut. This has pulled down the Namibian dollar, which fell 1.4 percent today after the rate cut to 15.34 to the U.S. dollar to be down 5.9 percent this year.
     In April BON lowered its forecast for economic growth this year to 0.3 percent from December's forecast of 1.5 percent and said today the domestic economy was projected to remain weak in 2019.
     Last year Namibia's economy shrank for the second consecutive year and in June the International Monetary Fund said it expected growth to "remain mildly negative in 2019, as a poor rain season and reduced diamond production continued to weigh on a tentative recovery."
     The central bank said the slowdown in the first six months of this year was reflected in the mining, construction, electricity, and wholesale and retail trade, while the sectors of manufacturing, transport and communication improved as compared to the same 2018 period.
     Namibia's gross domestic product contracted 2.0 percent year-on-year in the first quarter of this year, up from 1.9 percent fall in the fourth quarter of 2018 and a 0.2 percent decline in the third quarter of 2018 for a 2018 decline of 0.1 percent after a 0.9 percent fall in 2017.
     Inflation in Nambia slowed to 3.9 percent in June from 4.1 percent in May and averaged 4.4 percent in the first half, with BON attributing the moderation to a decline in housing inflation.
     BON forecast average inflation of 4.3 percent in 2019, down from its June forecast of 4.5 percent.
     While average growth in private sector credit extension (PSCE) rose to 6.9 percent in the first half from 5.9 percent in the same 2018 period, BON said this was mainly due to higher uptake by credit in the retail, real estate, financial and mining sectors.
     But growth in credit to individuals "slowed somewhat" during the first half, BON added.
     Together with the country's ministry of finance, BON revised the country's loan-to-value (LTV) ratios, with the new maximum LTV for the first, non-primary residence raised to 90 percent from a previous 80 percent. The ratios for second, third and fourth residences were also raised.
     "At these adjusted levels, the Bank believes that LTVs will continue to shield the financial system from undue risks going forward," BON said.
     BON began implementing the macroeconomic tool of LTVs in 2017 to mitigate the impact of an overheating housing market on the financial system.
     Since then, BON said, there have been developments that warranted a review of this policy, including a significant slowdown in the economy and a sharp correction in the housing market.

    www.CentralBankNews.info

   

This week in monetary policy: Namibia, Mozambique, Norway, Uganda & Mexico

    This week - August 11 through August 17 - central banks from 5 countries or jurisdictions are scheduled to decide on monetary policy: Namibia, Mozambique, Norway, Uganda and Mexico.

    Following table includes the name of the country, the date of the next policy decision, the current policy rate, the result of the last policy decision, the change in the policy rate year to date, and the rate one year ago.

    The table is updated when the latest decisions are announced and can always accessed by clicking on This Week.

WEEK 33
AUG 11 - AUG 17, 2019:
NAMIBIA	14-Aug	6.75%	0	0	6.75%
MOZAMBIQUE	14-Aug	13.25%	-100	-100	15.00%
NORWAY	15-Aug	1.25%	25	50	0.50%	DM
UGANDA	15-Aug	10.00%	0	0	10.00%
MEXICO	15-Aug	8.25%	0	0	7.75%	EM

    www.CentralBankNews.info