Following the surprise cut of the bank repurchase rate of the South African Reserve Bank from 7.50 to 7.00 percent at the end of last week, the Bank of Namibia (BoN) followed suit. For the ordinary citizen it means about N$ 200 to N$ 300 more in the pocket per month from May onwards as the interest rate on housing and car loans will come down half a percent as well as the interest rates for overdrawn bank accounts. Standard Bank announced on Wednesday that it will reduce its prime-lending rate by 0.50% with effect from 25 April 2005. The new rate will be 11.75%. This cut, being a first for 2005, aligns with the repo rate decrease announced by Bank of Namibia late last week. New home loans will only cost 12% but the fixed rate for home loans will remain at 12%. The vehicle and asset finance rate is linked to the prime rate and will change to 11.75% on 25 April 2005.