BoN cuts interest rates by 25bps

By Hilary Mare

The Monetary Policy Committee (MPC) of the Bank of Namibia (BoN) has cut the interest rates by 25 basis points to 6.50 percent.

According to the Governor of BoN, Ipumbu Shiimi, the MPC took the decision in order to support domestic economic activity and to maintain the one-to-one link between the Namibia Dollar and the South African Rand.

As at the 31st of July 2019, the stock of international reserves stood at N$35.2 billion, compared to N$34.1 billion reported in the previous MPC statement. This amount of international reserves is estimated to cover 4.8 months of imports of goods and services.

“At this level, the reserves are sufficient to protect the peg of the Namibia Dollar to the South African Rand and meet the country’s international financial obligations.

“Loan-To-Value (LTV) ratios adjusted after thorough assessment. New ratios to come into force after gazetting of revised Regulations relating to restrictions on loan-to-value ratios : Banking Institutions Act, 1998 by Minister of Finance,” Ipumbu said.