WINDHOEK, Aug. 15 — Namibian central bank on Wednesday decided to cut the repo rate by 25 basis points to 7.50 percent to bolster the domestic economy. Speaking at a media briefing in Windhoek, the capital of Namibia, Johannes Gawaxab, governor of the Bank of Namibia, said the rate cut is intended to support economic activity amid a slowing growth outlook for the year. He said global economic conditions also played a role in the decision, adding that although most monitored central banks have remained cautious about cutting policy rates due to lingering inflation, the monetary policy easing cycle has started in some economies. Namibia‘s economy showed signs of recovery in the first half of 2024, driven by sectors like mining, electricity generation, and tourism, but the growth is projected to decelerate to 3.1 percent in 2024 from 4.2 percent in 2023. Inflation has continued to moderate, with the central bank expecting it to average 4.7 percent in 2024, down from an earlier forecast of 4.9 percent.
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