WINDHOEK (CU)_ Over the recent months, many central banks decided to tighten their monetary policies, as economies begin to recover from the effects of COVID-19. South Korea was the first major economy to increase its post-crisis interest rate in August, followed by Norway in September, and New Zealand, earlier this month.
Nevertheless, the Bank of Namibia (BoN) intends to maintain the cost borrowing at the current rate until the end of this year, in order to accommodate a reasonable economic recovery. In a statement issued last week, BoN Governor Johannes !Gawaxab revealed that the monetary policy is of the view that the current benchmark rate of 3.75 per cent is appropriate and necessary to support economic activity which has been weakened by the global health crisis.
“At this level the repo rate is deemed appropriate to safeguard the one-to-one link between the Namibia dollar and the rand, while meeting the country’s international financial obligations,” the statement read.
According to experts, this decision is…
