WINDHOEK, July 24 (Xinhua) -- Namibian research firm, IJG Securities, said Wednesday that the country's central bank is expected to cut interest rates by 25 basis points at next month's Monetary Policy Committee meeting.

The research firm said Namibian consumers and businesses are thus likely to be provided with some slight relief.

"With the rate cut, it will become more attractive for businesses to acquire the debt finance needed to expand and invest in capital projects, but only marginally," IJG said in a statement

According to IJG interest rates are unlikely to be the major barrier to capital projects going forward.

"The construction industry, along with lenders, have been challenged by sluggish growth in the economy and poor business confidence rather than tight monetary policy," they added.

IJG expects the decrease in interest rates to bring about a significant improvement in the approvals and completions data in the short term as business confidence is still lacking.

The next Monetary Policy Committee meeting will take place on Aug. 13. Enditem