By Nyasha Nyaungwa
WINDHOEK (Reuters) -Namibia’s central financial institution stored its foremost rate of interest unchanged on Wednesday, responding to a slight uptick in inflation and defending the native forex’s peg to the South African rand.
The repo charge has been at 7.75% since June 2023. Shopper inflation edged as much as 4.9% in annual phrases in Could from 4.8% in April and 4.5% in March.
“The MPC (Monetary Policy Committee) was wary of the recent deterioration in inflation, which could jeopardise the progress that has been made over the past year in containing inflation and safeguarding price stability,” Financial institution of Namibia Governor Johannes !Gawaxab mentioned in a press release.
He mentioned dangers to the home financial outlook endured resulting from elements together with drought and falling diamond costs on the worldwide market.
Namibia is a significant diamond producer and has vital deposits of lithium and uncommon earth minerals utilized in electrical automobiles and wind generators.
The central financial institution sees inflation averaging 4.9% this yr, unchanged from its final MPC assembly in April.
