Namibia holds key rate citing projected inflation slowdown

WINDHOEK (Reuters) – Namibia’s central bank left its policy rate unchanged on Wednesday, citing a projected slowdown in inflation next year, continued slack in the economy and slow credit growth.

The decision to keep the rate at 7.75% is the third “hold” decision in a row, after the Bank of Namibia raised it by 50 basis points (bps) in June and twice by 25 bps earlier in 2023.

Inflation in the southern African country rose to 6.0% year on year in October from 5.4% in September, which the Bank’s Monetary Policy Committee said it noted.

However it said it still saw inflation falling to 4.8% next year, in line with the forecast given at its previous MPC meeting in October.

(Reporting by Nyasha Nyaungwa; Writing by Tannur Anders; Editing by Alexander Winning)