Inflation averaged 7.1% in 1Q 2023
Relative to 4.5% last year
Annual inflation stood at 7.2% in March 2023, the same rate recorded in the previous month.
Namibia’s annual inflation rate averaged 7.1% in the first three months of 2023, compared an average of 4.5% recorded in the first quarter of 2022, an increase of 2.6 percentage points, according to the Namibia Statistics Agency (NSA).
March 2023 registered an annual inflation rate of 7.2%, the same rate recorded the previous month. In March 2022, inflation came in at 4.5%. The Bank of Namibia expects inflation to average 5.3% in 2023.
The increase in inflation comes at a time when interest rates are also high, putting more pressure on consumers.
Analysts expect the Bank of Namibia to announce another interest rate hike next week Wednesday, following the recent South African Reserve Bank’s (SARB) decision to increase the repo rate by 50 basis points (bps) from 7.25% to 7.75%.
The repo rate in Namibia currently stands at currently stands at 7%, while the prime lending rate stands at 10.75%.
According to Simonis Storm, in a rare occasion, the governor of Bank of Namibia indicated that another 25bps hike in first half of 2023 would be very likely if inflation does not show signs of reducing closer to 6%. “We expect a 25 basis points hike at each of BoN’s two meetings in April and June 2023. Thereafter, we see the repo rate stable at 7.50% until the end of the year.”
South Africa
South Africa’s annual consumer inflation stood at 7.0% in February from 6.9% in January, according to Stats SA. The inflation figures for March will be released next week.
The South African Reserve Bank’s monetary policy committee prefers to anchor inflation expectations close to the 4.5% midpoint of its target range of 3%-6%.
Meanwhile, Fin24 recently reported that the South African Reserve Bank (SARB) Governor Lesetja Kganyago called for sweeping reforms to macroeconomic policies to boost economic growth, and lessen exchange rate volatility and sovereign risk.
That includes lowering the inflation target to 3%, the bottom of the current range, which will be a "major benefit to fiscal policy" and economic growth, the governor said. It will also reduce the potential for an upward drift in the real exchange rate and cut loan-service costs for the country’s over-indebted public sector, he said.
SARB has lifted the key interest rate by 425 basis points since November 2021 in an attempt to tackle the worst global inflation shock in a [email protected]
March 2023 registered an annual inflation rate of 7.2%, the same rate recorded the previous month. In March 2022, inflation came in at 4.5%. The Bank of Namibia expects inflation to average 5.3% in 2023.
The increase in inflation comes at a time when interest rates are also high, putting more pressure on consumers.
Analysts expect the Bank of Namibia to announce another interest rate hike next week Wednesday, following the recent South African Reserve Bank’s (SARB) decision to increase the repo rate by 50 basis points (bps) from 7.25% to 7.75%.
The repo rate in Namibia currently stands at currently stands at 7%, while the prime lending rate stands at 10.75%.
According to Simonis Storm, in a rare occasion, the governor of Bank of Namibia indicated that another 25bps hike in first half of 2023 would be very likely if inflation does not show signs of reducing closer to 6%. “We expect a 25 basis points hike at each of BoN’s two meetings in April and June 2023. Thereafter, we see the repo rate stable at 7.50% until the end of the year.”
South Africa
South Africa’s annual consumer inflation stood at 7.0% in February from 6.9% in January, according to Stats SA. The inflation figures for March will be released next week.
The South African Reserve Bank’s monetary policy committee prefers to anchor inflation expectations close to the 4.5% midpoint of its target range of 3%-6%.
Meanwhile, Fin24 recently reported that the South African Reserve Bank (SARB) Governor Lesetja Kganyago called for sweeping reforms to macroeconomic policies to boost economic growth, and lessen exchange rate volatility and sovereign risk.
That includes lowering the inflation target to 3%, the bottom of the current range, which will be a "major benefit to fiscal policy" and economic growth, the governor said. It will also reduce the potential for an upward drift in the real exchange rate and cut loan-service costs for the country’s over-indebted public sector, he said.
SARB has lifted the key interest rate by 425 basis points since November 2021 in an attempt to tackle the worst global inflation shock in a [email protected]
Comments
Namibian Sun
No comments have been left on this article