THE Bank of Namibia (BoN) yesterday kept its repo rate unchanged at 5,5%, saying the current low interest rate environment should be maintained so support economic growth and to mitigate, as far as possible, the impact of the slowdown in growth seen in many of Namibia's trading partners.
BoN Deputy Governor Ebson Uanguta said growth in Namibia "is expected to slow somewhat in 2013, in line with its key trading partners, although growth of domestic demand may remain strong, while elevated imported inflation may persist".
Uanguta said construction activity is likely to remain buoyant, while growth of the primary industry may recede on account of limited growth of mineral exports.
He said credit extended to households have lessened somewhat over recent months, while the majority of credit extension growth has accrued to businesses, which are generally seen to put credit to more productive uses than households.
"Growth in instalment credit (largely non-productive credit), decelerated in the last quarter of 2012. This is a welcomed development; however, credit extension will be monitored on a continuous basis," Uanguta said.