Rate Cut Signals Benign Inflationary Risks

BMI View: The Bank of Namibia's policy rate cut of 25bps to 6.75% in October 2010 is a reflection of the bank's uncertainty about the global economic outlook and comfort with the current level of inflation. Despite low inflationary risks, the cut is quite conservative, and BoN's rate is still 75bps above the South African Repo rate.

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