Namibians might have to brace themselves and expect rising interest rates throughout the course of the year, according to Diederik Kruger, who is the head of funding and liquidity management at Namibia’s Bank Windhoek.
“The SA Reserve bank warned against the inflation pressures and hiked rates since November 2021 to curb the inflation further. The expectations are that rates will continue to increase for the remainder of this year and could be higher than expected if a new wave of lockdowns is introduced or if tensions in Europe develop further,” Kruger said on Tuesday.
He was speaking at a time when Bank Windhoek announced increases in its Prime Lending and Mortgage Lending rates.
“In response to the announcement by the Monetary Policy Committee of the Bank of Namibia to increase the policy rate as announced on 13 April 2022, Bank Windhoek hereby confirms the increase of its Prime Lending Rate by 0.25 percent from 7.75 percent to 8.00 percent. The Mortgage Lending Rate will increase from 8.75 percent to 9.00 percent,” he said.
The interest rate changes were effective from April 14, 2022.
According to Diederik Kruger, worldwide inflationary pressure in the aftermath of the pandemic, coupled with geopolitical tension in the northern hemisphere in early 2022 has impacted the supply of goods in first world countries.
“The concerns surrounding the supply of natural gas and fuel oil have also impacted the price for the consumer and will in the coming months impact the price of all consumer goods that is dependent on long haul transportation,” he said.
“Customers should be mindful of the increasing rates when entering into new loan agreements and plan accordingly,” Kruger said. Enditem