In a bid to keep inflation under control, Namibia’s central bank raised interest rates by 25 basis points to 7.0% on Wednesday.
Seven rate increases have been made by the Namibian Central Bank in the last 12 months. Inflation was 6.9 percent in December, but it increased to 7.0 percent in January.
“There is still a slow improvement in domestic economic activity. Although lending to the private sector growth is still sluggish, the inflation rate is still high “said the governor of the central bank.
The statement claimed that the nation’s foreign exchange reserves are still sufficient to support a currency peg with the South African rand and meet its financial obligations to other countries.