Namibia central bank keeps rates steady, economy to grow

WINDHOEK (Reuters) - Namibia's central bank kept its main lending rate unchanged at 5.5 percent for the seventh straight time on Wednesday, saying economic growth was expected to continue in 2014 while inflation would remain at sustainable levels. In a statement posted on its website, the Bank of Namibia said growth in 2014 was expected to be supported by the sustained rapid pace of construction and mining, as well as strong growth in consumer demand. "The performance of the Namibian economy remained broadly satisfactory during the first two months of 2014. Looking ahead, prospects for 2014 are encouraging," said the bank, which raised its 2014 growth forecast to 5.3 percent from 5 percent in February. Inflation, which averaged 5.1 percent during the first three months of the year, was seen increasing slightly in the second quarter, but would remain below 6 percent, the bank added.