The Bank of Namibia held its benchmark repo rate steady at 6.75 percent on its December 5th 2018 meeting, saying that the current monetary policy stance remains appropriate to maintain the one-to-one link between the South African rand and the Namibian dollar, while supporting domestic economic growth. The Committee noted that the economy remained weak during the first ten months of the year, as agriculture and wholesale and retail trade sectors continued to decrease and it is projected to remain weak in 2018. The annual inflation rate rose to 5.1 percent in October from 4.8 percent in November, boosted by higher prices of food and non-alcoholic beverages, and it is expected to average around 4.3 percent in 2018 and 5.4 percent in 2019. Interest Rate in Namibia averaged 7.08 percent from 2007 until 2018, reaching an all time high of 10.50 percent in May of 2007 and a record low of 5.50 percent in August of 2012.
Interest Rate in Namibia is expected to be 6.75 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Namibia to stand at 6.00 in 12 months time. In the long-term, the Namibia Interest Rate is projected to trend around 5.75 percent in 2020, according to our econometric models.