WINDHOEK, April 17 — Namibia’s inflation rate has seen a significant slowdown, with an average of 5 percent recorded in the first quarter of 2024, according to the latest announcement by Governor of the Bank of Namibia Johannes Gawaxab on Wednesday.
This marks a notable decrease from the 7 percent average during the same period in 2023.
The deceleration has been attributed primarily to lower food and transportation prices, signaling positive trends in the country’s economic landscape, Gawaxab said.
Specifically, inflation dropped to 4.5 percent in March 2024 compared to the 5.4 percent reported in January 2024, as disclosed in the previous Monetary Policy Committee (MPC) meeting.
However, Gawaxab warned of potential factors that could lead to a slight uptick in inflation. He cited persistent geopolitical tensions and uncertain rainfall conditions, which may trigger speculative spikes in oil prices.
“Looking ahead, inflation is anticipated to slow down to 4.9 percent in 2024, 0.1 percentage point above the projection at the previous MPC meeting,” he said.
Given these considerations, the central bank maintained the repo rate at 7.75 percent, with the prime lending rate remaining steady at 11.50 percent.
“The MPC noted the persistence of global inflation and a range of inflation risks but took comfort in the downward trend in domestic inflation and the positive level of domestic real interest rates, which help to contain inflationary pressures,” Gawaxab said.
In addition, the announcement addressed concerns about international reserves, which are considered adequate, while highlighting subdued domestic credit growth as an ongoing challenge.
Gawaxab reiterated that the central bank’s policy stance aims to uphold the one-to-one link between the Namibian dollar and the South African rand while supporting domestic economic activity.
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