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Bank of Namibia

Summary

Find out more about Monetary Policy Statement 4th December 2024.

Monetary Policy Statement 4th December 2024
04 December 2024 | Media Release
 

REPO RATE REDUCED BY 25 BASIS POINTS TO 7.00 PERCENT 

On the 2nd and 3rd of December 2024, the Monetary Policy Committee (MPC) of the Bank of Namibia held its sixth and final bi-monthly meeting for 2024 to decide on the appropriate monetary policy stance for the next two months. To continue supporting the domestic economy while safeguarding the peg between the Namibia Dollar and the South African Rand, the MPC unanimously decided to reduce the policy rate by 25 basis points to 7.00 percent. This decision was reached following a comprehensive review of current and expected domestic, regional and global economic developments. 

RECENT ECONOMIC DEVELOPMENTS 

Domestic economic activity continued to expand during the first ten months of 2024. The domestic disinflationary process progressed steadily since the previous MPC meeting, while growth in Private Sector Credit Extension (PSCE) improved despite remaining subdued. The merchandise trade deficit widened further, while the stock of international reserves remained sufficient to maintain the currency peg and meet the country’s international financial obligations. 

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