Windhoek
The Bank of Namibia’s Monetary Policy Committee (MPC) has decided to maintain the repo rate at 6.5 percent. The MPC said yesterday it remains concerned about high growth in instalment credit extended to households, despite a slowdown observed in recent months. The central bank once again warned that a considerable number of these loans are still used to finance unproductive imported luxury goods, which they say puts pressure on the country’s international reserves.
Making the announcement yesterday, central bank governor, Ipumbu Shiimi, said key indicators in the domestic economy displayed positive developments during the first six months of 2015, and domestic inflation was contained over the same period.
Shiimi also pointed out that the primary drivers behind the improved domestic economy over the review period were robust construction activities in the public and private sector, as well as wholesale and retail trade. He said going forward the domestic economy is expected to grow by 5 percent in 2015, up from 4.5 percent in 2014. “Risks to domestic growth remain the slow recovery in the economies of the country’s trading partners, low commodity prices and adverse weather conditions,” Shiimi noted.