June 15, 2022
Inflation is projected to average around 5.9% for the year, from the 6.0% forecast at the last Monetary Policy Committee meeting, central bank governor Johannes !Gawaxab said.
“Although overall inflation remains within a reasonable range, inflation risk … persists and mainly lingers around supply disruptions which may continue to put pressure on food and oil prices,” he said.
Annual inflation in May stood at 5.4%, down slightly from 5.6% in April, with transport, food and non-alcoholic beverages being the major contributors, data from the statistics agency showed earlier in the day.
Namibia’s central bank on Wednesday raised its main lending rate by 50 basis points to 4.75%, citing persistent inflationary pressures.
The Bank of Namibia said it expected the domestic economy to grow around 3% in 2022.
“We think that it should probably be around 3% rather than the firm 3% that we gave earlier,” !Gawaxab told a news conference.
The rate hike was a unanimous decision, which the central bank said was also motivated by the need to safeguard the 1:1 link between the Namibian dollar and South Africa’s rand.
The South African Reserve Bank last month raised its key rate by 50 basis points to 4.75%.
