Unchanged repo rate a welcome relief for consumers – Local economist

By: Joseph Sheefeni

A local economist, Joseph Sheehama, has described the unchanged repo rate as good news for the public, as it coincides with a drop in fuel prices this week. Sheehama’s remarks come after the Bank of Namibia announced that the repo rate will remain unchanged at 7.75 percent for another two months.

Sheehama stated that this is a relief for those with loans and mortgages. “It will not create additional pressure on the current instalments. This means that consumers are actually relieved and on top of that you heard about the fuel drop as well, that is actually good news,” said Sheehama.

The Bank of Namibia governor, Johannes !Gawaxab, said the prime lending rate will remain at 11.50 percent for another two months as the bank’s monetary policy committee’s decision was made after considering internal and external economic factors.

“It’s not a case where we decide upfront whether we are going to reduce or increase.It is all about looking at the incoming data and based on the data , we decide what the appropriate monetary stance is,” said!Gawaxab while addressing the media at the last monetary policy announcement for the year. 

Sheehama however, noted that the energy market remains volatile and factors such as a rise in interest rates and inflation could determine the next MPC decision in February 2024.  

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