WINDHOEK, Oct. 17– The central bank of Namibia on Wednesday announced a reduction in the repo rate by 25 basis points to 7.25 percent, to bolster the domestic economy amid a slowing growth outlook. Speaking at a media briefing in Windhoek, the Namibian capital, Johannes Gawaxab, governor of the Bank of Namibia, explained that the decision is intended to provide support to the Namibian economy, which has shown signs of recovery but faces challenges ahead. “The reduction in the repo rate will offer further support to the domestic economy as it continues to operate below full capacity,” Gawaxab said. Namibia‘s economy grew during the first half of 2024, driven by sectors such as mining, electricity generation, and tourism, but Gawaxab said growth is expected to decelerate to 3.1 percent this year, compared to 4.2 percent in 2023. “The monetary policy easing cycle has commenced in some economies, though many central banks remain cautious due to inflationary concerns,” Gawaxab added. According to the central bank, Namibia has seen inflation ease, with the average inflation forecast for 2024 revised downward to 4.3 percent from 4.7 percent earlier this year. The bank expects the reduction in the repo rate to help stimulate economic activity and credit demand, supporting the country’s growth prospects.
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