Windhoek, Aug 19 (IANS): Namibia's annual average inflation declined to 2.1 per cent during the first seven months of 2020 as compared to 4.3 per cent in the corresponding period of 2019, Bank of Namibia Governor Gawaxab said on Wednesday.

Gawaxab in a monetary policy announcement said the lower inflation was mainly due to the decline in transport, housing, and food inflation, Xinhua news agency reported.

"On a monthly basis, the inflation rate remained unchanged at 2.1 percent in July 2020. Overall inflation is projected to average around 2 per cent in 2020," he added.

The Governor also announced that the repo rate has been reduced to 3.75 per cent, a new historic low as well.

Gawaxab said that the monetary policy committee also noted the efforts made to support economic activity and bridge the financing gaps left by the COVID-19 pandemic, and is confident that this will further underpin a recovery of the Namibian economy.