Rates To Remain On Hold, For Now

In line with our expectations, the Bank of Namibia (BoN) kept rates on hold at 7.00% at its February meeting. The decision marked the fourth consecutive meeting at which rates have been left unchanged, mirroring a trend seen in neighbouring South Africa. Given the central bank typically takes its monetary policy cues from the Reserve Bank of South Africa - the Namibian dollar is pegged to the rand - we expect rates to remain at 7.00 %until the latter half 2010, when we them rising by 50 basis points to 7.50%.

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