Another repo rate hike

Namibia’s central bank this morning announced its raising of the country’s prime lending rate by 25 basis points, to 7%. Bank of Namibia (Bon) Governor Iipumbu Shiimi said the decision was necessary to prevent capital outflows which could put pressure on the country’s international reserves.

“With this increase in the Repo rate, it is expected that deposit-taking institutions will also raise deposit rates by the same margin, thereby encouraging savings,” Shiimi said. Read more about Another repo rate hike