WINDHOEK: The Bank of Namibia ( BoN ) announced a 25 basis point reduction in the repo rate , from 7 . 50 per cent to 7 . 25 per cent , on Wednesday . BoN Governor Johannes ! Gawaxab said the Monetary Policy Committee ( MPC ) took the decision during its fifth bi – monthly meeting held on 14 and 15 October 2024 . ‘ To continue supporting the domestic economy while simultaneously safeguarding the peg between the Namibia Dollar and the South African Rand , the MPC unanimously decided to cut the repo rate by 25 basis points to 7 . 25 per cent ,’ ! Gawaxab said . The decision will be effective immediately , with commercial banks expected to reduce their prime lending rates accordingly . ! Gawaxab said the MPC noted that domestic economic activity had risen during the first eight months of 2024 , although growth slowed in the second quarter compared to the same period in 2023 . The economy grew by 3 . 5 per cent in the second quarter of 2024 , a decrease from the 4 . 3 per cent recorded in the previous quarter . P
rojections indicate that growth will moderate to 3 . 1 per cent for the year , with an expected recovery in 2025 , he said . The BoN governor further stated that the MPC also observed that inflation had receded over the past months . Inflation averaged 4 . 6 per cent during the first nine months of 2024 , compared to 6 . 0 per cent in the same period in 2023 . The committee revised the medium – term inflation forecast to 4 . 3 per cent for 2024 and 4 . 0 per cent for 2025 . The drop in inflation was driven by lower food and transport costs , along with improved oil prices and a stronger exchange rate . ! Gawaxab also noted that in terms of external factors , the trade deficit widened to N . dollars 25 . 8 billion during the first eight months of 2024 , up from N . dollars 21 . 2 billion in the same period of 2023 . This , he said , was largely due to higher import payments for machinery and consumer goods .
Source: The Namibia News Agency