Bank Windhoek has announced that there will be an increase in its prime lending rate by 0.25% from 9.75% to 10.00% adding that the Mortgage Lending Rate will increase from 10.75% to 11.00%.
This is in reaction to the increase in the repo rate by the Monetary Policy Committee of the Bank of Namibia (BON). According to a press statement from Bank Windhoek, these interest rate changes will be effective from Saturday, February21, 2015.
The Chief Treasure of Bank Windhoek, Claire Hobbs, stated that the increase is based on the Bank of Namibia’s concern around the continued growth in overdrafts and instalment credit, leading to high levels of household indebtedness. “This could lead to further increases in borrowing rates if credit extension does not slow, and consumers should therefore attempt to repay their debt as soon as possible, to avoid the additional interest burden”said Claire.