The Bank of Namibia’s Monetary Policy Committee unanimously held the Repo rate at 6.75 percent for the next two months, balancing subdued economic activity, a relatively benign inflation outlook and sufficient foreign reserves against elevated inflation pressures and the need to safeguard the currency peg and stem capital outflows. Over the past year, the central bank cut the rate by 25 basis points to 6.50 percent in October 2025, held it through April 2026 and reversed the cut in June. The Prime lending rate remains 10.25 percent. Headline inflation rose to 4.4 percent in June, while 2026 inflation is projected at 4.0 percent and growth at 2.1 percent after a downward revision, with Private Sector Credit Extension growth slowing to 4.5 percent. International reserves rose to NAD 57.1 billion at end-July, equivalent to 3.5 months of import cover and sufficient to support the one-to-one link between the Namibia Dollar and South African Rand, although the merchandise trade deficit widened. Globally, activity moderated as elevated oil prices and renewed Middle East tensions sustained inflationary and downside growth risks.
Bank of Namibia2026-08-12
Bank of Namibia Holds Repo Rate at 6.75%
The Bank of Namibia held the Repo rate at 6.75 percent, citing subdued activity, a benign inflation outlook and adequate reserves alongside inflation pressures and risks to the currency peg and capital flows. It projects 2026 inflation at 4.0 percent and growth at 2.1 percent, while reserves stood at NAD 57.1 billion at end-July, covering 3.5 months of imports.