THE Monetary Policy Committee (MPC) of the Bank of Namibia (BON) left the Repo Rate unchanged at 6.75%.
The MPC is of the view that this rate is appropriate to support the one-to-one link between the Namibia Dollar and the South African Rand.
BON further reported that the Domestic economic activity slowed during the first four months of 2019, compared to the same period in 2018.
The slowdown was reflected in sectors such as mining, agriculture, construction and wholesale and retail trade. Similarly, the manufacturing, tourism and electricity sectors also displayed declining activity during the first quarter of 2019, relative to the corresponding period of 2018.
Going forward, the domestic economy is projected to remain weak in 2019.
BON further noted that on 31 May 2019, the stock of international reserves stood at N$34.1 billion, compared to N$32.6 billion reported in the previous MPC statement.
This amount of international reserves is estimated to cover 5.6 months of imports of goods and services. At this level, the reserves are sufficient to protect the peg of the Namibia Dollar to the South African Rand and meet the country’s international financial obligations.
Since the previous MPC meeting in April 2019, most central banks in both the AEs and EMDEs have left their policy rates unchanged. The exceptions were the central banks of India and Angola.
Inflation in the monitored AEs and EMDEs ticked up in April 2019, except in Russia, South Africa and Angola, where it slowed.