The Bank of Namibia’s Monetary Policy Committee left the repo rate unchanged at 6.50 % for the next two-month period, judging the stance appropriate to preserve the one-to-one Namibia dollar/South African rand peg while cushioning a slowing domestic economy amid subdued credit demand and contained inflation. After two 25 bp cuts in February and October 2025, which lowered the policy rate by a cumulative 50 bp, the committee saw no need for further adjustment. Commercial banks are expected to keep prime lending rates at 10.00 %. Average consumer inflation eased to 3.5 % in 2025 from 4.2 % in 2024 and fell further to 2.9 % in January 2026; it is projected at 3.5 % for 2026 and 3.4 % for 2027, with upside risks from administered prices, currency swings and geopolitics. Real GDP growth weakened through the first three quarters of 2025, while private-sector credit growth slowed to 4.4 % y/y in December from a 5.9 % peak in September. Externally, the 2025 merchandise trade deficit narrowed 35 % to NAD 25 bn and international reserves rebounded to NAD 51.9 bn in January, providing 3.3 months of import cover and supporting the peg. Globally, the IMF projects steady 3.3 % growth in 2026 as inflation eases, though commodity prices for gold, zinc, copper and uranium have firmed and oil has risen amid renewed geopolitical tensions. The committee signalled that previous easing and a normalised prime-repo spread already offer sufficient support, and it will review the stance again at its l
Bank of Namibia 2026-02-18
Bank of Namibia holds repo rate at 6.50%
Bank of Namibia’s Monetary Policy Committee left the repo rate at 6.50 %, saying the level protects the Namibia dollar/South African rand peg while aiding a cooling economy with muted credit demand and low inflation. The hold follows two 25 bp cuts in 2025, keeps prime lending at 10 %, and will be reviewed again in late April.