Southern Africa market focus: Namibia inflation outlook, SA dodges technical recession

Namibia's inflation numbers have recently been published, showing a positive trend with a decrease from 5.4% to 5%. Angeline Moseki, an Economist from Africa FIC Research at Standard Bank Group, joined CNBC Africa to discuss this development. Moseki expressed that the inflation number was in line with their expectations, citing a previous uptick in housing-related costs that has now tapered off. Looking ahead, Moseki shared insights on the sustainability of the lower inflation trend in Namibia and mentioned a projected decrease to about 4% by the end of the year. However, she highlighted potential risks such as drought and oil prices impacting the outlook positively. When discussing the implications for monetary policy, Moseki mentioned a possible cut of 75 basis points in 2024 by the Bank of Namibia, with additional cuts in the following year. Despite the positive inflation outlook, the MPC may not rush into rate cuts, waiting for a more stable economic environment. The interview also covered inflation data from Lesotho and Eswatini, pointing out challenges in the transport and food sectors, but predicting a more accommodative stance in the region. Overall, Moseki painted a comprehensive picture of inflation trends in Namibia and neighboring countries, emphasizing the need for cautious monetary policy decisions.