Rates up, government's options down
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Cirrus Capital analyst Deon Gous warns of mounting financial pressure as interest rates climb, farmers struggle and government's financial hands remain tied.
The Bank of Namibia's decision on Wednesday to hike its repo rate by 25 basis points to 7% has dealt another blow to an agricultural sector already battered by foot-and-mouth disease.
And with government having precious little fiscal room to manoeuvre, finding the money to fight the outbreak is no small challenge.
Gous unpacks the double whammy of higher borrowing costs and an already stretched national purse.
Follow KosmosKapitaal. Stay ahead of the money, markets and economy.
The Bank of Namibia's decision on Wednesday to hike its repo rate by 25 basis points to 7% has dealt another blow to an agricultural sector already battered by foot-and-mouth disease.
And with government having precious little fiscal room to manoeuvre, finding the money to fight the outbreak is no small challenge.
Gous unpacks the double whammy of higher borrowing costs and an already stretched national purse.
Follow KosmosKapitaal. Stay ahead of the money, markets and economy.
