Bank of Namibia (BoN)

Rising interest rates putting squeeze on economy

Rising interest rates putting squeeze on economy

Tujoromajo Kasuto Analysts expect interest rates going up by another 100 basis points or one percent before the end of the year sending home and vehicle repayments through the roof. The Bank of Namibia (BoN) is expected to raise it repo rate that will hike the interest rates from 9.5% and 10.5% to 10.5% and 11.5% respectively by the fourth quarter of 2022. According to Simonis Storm economist, Theo Klein this would place indebted households and corporates in a worse financial position given that mortgages constitute the largest component total household and corporate debt. He added that also corporates battling…
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BoN maintains Repo rate unchanged

BoN maintains Repo rate unchanged

Staff Writer The Monetary Policy Committee (MPC) of the Bank of Namibia (BoN) resolved to keep the repo rate unchanged at 3.75 percent, Governor Johannes !Gawaxab, announced yesterday, on Wednesday. “The MPC is of the view that the rate remains appropriate to continue supporting domestic economic activity, while at the same time safeguarding the one-to-one link between the Namibia Dollar and the South African Rand. This decision was taken following a review of global, regional and domestic economic and financial developments.” Namibia’s stock of international reserves as on the 31st January, 2021, according to BoN, stood at N$34.4 billion compared…
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Bank of Namibia watches our wallets

The Bank of Namibia (BoN) has come to the rescue. They have classified the activities of Mufhiwa Building Projects as a pyramid scheme. Those involved are conning people out of their hard-earned money and pocketing the proceeds. BoN has cautioned the public to beware and avoid any transactions with Mufhiwa Building Projects or similar entities that may be doing the exact same thing. BoN has ordered promoters of Mufhiwa Building Projects and those who are already caught in its web as ‘members’ to stop doing any kind of business. A nod must be given to BoN for watching our wallets.…
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BoN maintains Repo rate unchanged

BoN maintains Repo rate unchanged

Staff Writer The Bank of Namibia (BoN) on Wednesday announced that its Monetary Policy Committee (MPC) had resolved to keep the Repo rate unchanged at 3.75 percent. “The MPC is of the view that the rate remains appropriate to continue supporting domestic economic activity, while at the same time safeguarding the one-to-one link between the Namibia Dollar and the South African Rand,” BoN Governor Johannes !Gawaxab said. He said domestic economic activity had slowed during the first eight months of 2020, compared to the same period of 2019. The bank forecasts the domestic economy to contract by 7.8 percent in…
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Economy to contract by 7.9 percent …as Gvt offers tax filing incentives

Economy to contract by 7.9 percent …as Gvt offers tax filing incentives

Andrew Kathindi Namibian economic activity is predicted to contract by 7.9 percent, about 0.1 percent more than the 7.8 percent the Bank of Namibia (BoN) had forecasted for 2020, in August this year. Finance Minister, Iipumbu Shiimi in his delivery of the mid-term budget review, said the contraction was, “ a historic high whose contours cut across all economic sectors.” “The pandemic induced deepest historic recession this year exacerbated this situation, with a fallout on businesses, jobs, per capita income and public revenue.” Shiimi further said, “While the worst impact of the pandemic appears to have abated, its impact on…
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!Gawaxab commemorates 100 days in office

!Gawaxab commemorates 100 days in office

Staff Writer Bank of Namibia (BoN) Governor, Johannes !Gawaxab on Thursday commemorated his 100 days in office, while outlining his vision for the apex Bank. !Gawaxab took over the reins at the Bank at a time when the country was grappling with the negative impacts of COVID-19 on the economy. He was appointed as the third BoN Governor by President Hage Geingob in April, 2020. “I experience first-hand the resilience of the Namibian people who must face this situation daily, while the pandemic dominates without a clear ending, and who selflessly strive to save lives and the livelihoods of their…
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Shivute lands NamRA top job

Shivute lands NamRA top job

Staff Writer Bank of Namibia (BoN) Director of Banking Services, Sam Shivute is set to be appointed the inaugural head of the Namibia Revenue Agency (NamRA) after cabinet chaired by President Hage Geingob approved his appointment. The last hurdle in the unveiling of Shivute now lies with the Public Service Commission, which is widely expected to approve his appointment as Commissioner of NamRA following cabinet’s nod. Shivute will ascend to head the revenue body amid allegations that recruitment procedures were violated to ensure that he emerges as the preferred candidate, with the finance minister Iipumbu Shiimi as the key driver…
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Shiimi pushes for Shivute at NamRA …as board remains in the dark

Shiimi pushes for Shivute at NamRA …as board remains in the dark

Staff Writer Bank of Namibia (BoN) Director of Banking Services, Sam Shivute is front runner to land the Commissioner position at the newly established Namibia Revenue Agency (NamRA) amid allegations that Finance minister Iipumbu Shiimi has deliberately pushed through the candidature of his former colleague in a questionable recruitment process. This comes as insiders revealed that Shiimi had forwarded three names for cabinet’s consideration, with Shivute scoring 20 points more than other candidates despite his lack of an accounting or tax background, a key requisite for the post. The scoring of the Shivute is said to have raised concern among…
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BoN calls for structural interventions

BoN calls for structural interventions

Staff Writer The Governor of the Bank of Namibia (BoN), Johannes !Gawaxab says although the central bank has continuously ensured a favorable macroeconomic environment for the country’s economic growth over the past 30 years, structural interventions are required to increase Namibia’s growth potential. “This Bank is ready to work with the Government, not in a subservient role, but rather in a complementary fashion to set the framework for accelerated economic development. The Namibian economy needs structural interventions to achieve a sustained increase in our growth potential,”! Gawaxab said during commemorations of BoN’s 30th anniversary. “We need to dedicate our time…
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Bank Windhoek cuts interest rates

Bank Windhoek cuts interest rates

Staff Writer In response to the announcement by the Monetary Policy Committee of the Bank of Namibia (BoN) to cut the Repo rate from 4.25 percent to 4 percent as announced on 17 June 2020, Bank Windhoek has announced a reduction of its Prime Lending Rate by 0.25 percent from 8 percent to 7.75 percent. The bank’s Mortgage Lending Rate will decrease from 9 percent to 8.75 percent, effective from Tuesday, 23 June 2020. “While the possibility of more cuts cannot be ruled out at this point, we expect that the benefit from the sharp cuts will gradually alleviate the…
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