The Bank of Namibia has raised its benchmark interest rate for the first time since 2023, joining Botswana and Rwanda among African nations tightening monetary policy as rising energy costs fuel fresh inflation concerns.
Namibia’s central bank increased its repo rate by 25 basis points to 6.75 percent following the latest meeting of its Monetary Policy Committee.
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The decision marks a shift after three years of stable rates and reflects growing concerns over rising prices, despite recent diplomatic efforts that helped reduce tensions between the United States and Iran.
“The Monetary Policy Committee noted rising global and domestic inflationary pressures over the near term, despite the ensuing peace agreement between the United States and Iran,” the central bank said.
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Inflation in Namibia accelerated to 4.1 percent in
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