The Monetary Policy Committee of the Bank of Namibia kept the repo rate unchanged at 6.50 percent for the next two months, citing the need to safeguard the Namibia dollar–South African rand peg while balancing an expected upturn in inflation against subdued domestic growth and credit demand. The rate has remained at this level since a 25 bp cut in October 2025. Commercial banks are to maintain prime lending rates at 10.00 percent. Inflation averaged 2.5 percent in the first quarter and slipped to 2.1 percent in March, but is forecast to climb to 3.7 percent in 2026 before easing to 3.4 percent in 2027; GDP growth slowed to 1.7 percent in 2025 and is projected to recover to 2.6 percent this year, while private-sector credit growth inched up to 4.7 percent y/y in February yet remains tepid. Externally, the merchandise trade deficit widened 9.5 percent y/y to about NAD 9 billion in the first quarter and the currency has depreciated, though international reserves held steady at NAD 51.8 billion (3.2 months of import cover), deemed adequate for the peg. The committee highlighted persistent global uncertainty, a sharp rise in energy prices linked to Middle East tensions, and the IMF’s downgrade of 2026 world growth to 3.1 percent alongside a higher global inflation outlook of 4.4 percent, and said it would maintain a cautious policy stance amid elevated external and inflation risks.
Bank of Namibia 2026-04-29
Bank of Namibia keeps repo rate unchanged at 6.50%
Bank of Namibia’s Monetary Policy Committee held the repo rate at 6.50 % for another two months, keeping prime lending at 10 %, to safeguard the Namibia dollar–rand peg while balancing a forecast inflation upturn against muted growth and credit demand. The committee flagged heightened external uncertainty and energy-price pressures and said it will retain a cautious stance.