Namibia: SA Inflation Target Benefits Namibia's Price Stability

Namibia: SA Inflation Target Benefits Namibia's Price Stability

An analysis conducted by the Bank of Namibia shows that a lower inflation target of 3% in South Africa will lead to low and stable long-term inflation in Namibia, which is beneficial for price stability. The Bank of Namibia states that the eventual decline in inflation is expected to cause a reduction in interest rates in the medium term.

New SA inflation target expected to lower prices in Namibia – Windhoek Observer

Chamwe Kaira The Bank of Namibia (BoN) has welcomed South Africa’s new inflation target, announced on 12 November, which lowers the previous 3 to 6% range to 3% with a 1% tolerance band. Director of strategic communications and international relations, Kazembire Zemburuka, said the decision will affect Namibia as a member of the common monetary area (CMA).  He said the lower target is expected to lead to lower inflation and a reduction in intere…