Namibian business confidence rose to a record high in November as businesses were optimistic after a series of interest rate cuts, a survey showed on Thursday, according to Reuters. The Institute of Public Policy Research (IPPR) which publishes the Business Climate Monitor said the index climbed 9.8 basis points to 136.7 points in November. "The surge is carried primarily by a regulatory drop in prime rates to 10.5 percent and a 13.7 percent higher credit extension to business," the IPPR said in a statement. Prime rates -- the rate at which commercial banks lend to the private sector -- have decreased in line with the central bank's repo rate that has fallen by 450 basis points in the past two years. Its most recent cut last week brought the repo rate down by 75 basis points to 6.0 percent. Consumers were still feeling a bit pinched financially though, the survey showed. "Unfortunately, the low inflation and benevolent interest rates have not resulted in individuals seeking greater credit in general as credit extension growth has stagnated," the IPPR said. "With consumers reluctant to borrow, business confidence will remain fickle going forward."
