in line with expectations since the central bank has no justifiable reason to move the interest rate at this point in time. “The BoN has adequate foreign currency reserves to maintain the currency peg with the rand, Namibia’s inflation rate is below South Africa’s, and we do not see excessive credit growth in the private sector,” analysts at Windhoek-based Simonis Storm Securities said. They noted that although the current low interest rate is not a stimulant to economic activity, it is necessary to provide relief to indebted households and businesses.
In neighbouring South Africa, the central bank is expected to increase its repo rate by 25 basis points next month, aligning it with that of Namibia. It is widely believed that rising inflation would be one of the key contributors to a rate hike by the South African Reserve Bank (SARB), the annual inflation remained above the 4.5 per cent midpoint for the fifth consecutive month in September.
