Namibia’s central bank raised borrowing costs by the biggest margin in almost two decades to safeguard its currency peg with South Africa’s rand and curb inflation.
The monetary policy committee lifted the rate by 75 basis points to 5.5%, the biggest increase since September 2002.
The hike brings Namibia on par with South Africa, which raised its benchmark interest rate by 75 basis points last month, and aligns with other central banks seeking to curb inflation.
Annual inflation accelerated to a more than five-year high of 6.8% in July, driven by surging food and transport costs, surging energy prices and supply shortages caused by Russia’s invasion of Ukraine, the lingering effects of COVID-19 lockdowns and extreme weather.
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