Earlier this week, the Bank of Namibia’s Monetary Policy Committee (MPC) decided to trim its key policy rate (Repo), for the first time in 2-years, by 25bps to 6.5%.
This is on the back of the recent dovish chorus across the globe amid concerns of slowing growth. Beyond this, the moderation in the inflation rate (down 151bps YTD to 3.6%, as Jul-19), as well as the recessionary status of the Southern African nation (Q1-19 GDP: -2.0y/y) had necessitated the accommodative stance.
Earlier this week, the Bank of Namibia’s Monetary Policy Committee (MPC) decided to trim its key policy rate (Repo), for the first time in 2-years, by 25bps to 6.5%. This is on the back of the recent dovish chorus across the globe amid concerns of slowing growth. Beyond this, the moderation in the inflation rate (down 151bps YTD to 3.6%, as Jul-19), as well as the recessionary status of the Southern African nation (Q1-19 GDP: -2.0y/y) had necessitated the accommodative stance.
Although the IMF excepts economic growth to turn positive in 2020, we believe like many struggling African nations, structural reforms are needed to strengthen productivity, competitiveness, lift business confidence and boost the long-term growth potential of the
economy.
United Capital Plc Research Pan African Monitor
