Namibia Keeps Policy Rate Steady at 6.5%

2026-04-29 09:42 By Luisa Carvalho 1 min. read

The Bank of Namibia left its benchmark repo rate unchanged at 6.5% during its April 2026 meeting, marking the third consecutive hold, in a bid to preserve the Namibian Dollar’s peg to the South African Rand while supporting the domestic economy.

Policymakers noted that while inflation remained contained during the first quarter, risks to the outlook are skewed to the upside, driven by administered price pressures, exchange rate volatility, and spillovers from the prolonged Middle East conflict.

The annual inflation rate eased to 2.1% in March, the lowest since July 2020, from 2.4% in the prior month, marking a fifth consecutive month of slowdown.

Looking ahead, inflation is projected to rise notably in Q2 2026, averaging 3.7% for the year versus a 3.5% estimate in February, before gradually moderating to 3.4% in 2027.

Meanwhile, domestic activity remained subdued.

Real growth is expected at 2.6% in 2026 and 2.9% in 2027, both below December's estimates of 3.8% and 4.3%, respectively.



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Namibia Keeps Policy Rate Steady at 6.5%
The Bank of Namibia left its benchmark repo rate unchanged at 6.5% during its April 2026 meeting, marking the third consecutive hold, in a bid to preserve the Namibian Dollar’s peg to the South African Rand while supporting the domestic economy. Policymakers noted that while inflation remained contained during the first quarter, risks to the outlook are skewed to the upside, driven by administered price pressures, exchange rate volatility, and spillovers from the prolonged Middle East conflict. The annual inflation rate eased to 2.1% in March, the lowest since July 2020, from 2.4% in the prior month, marking a fifth consecutive month of slowdown. Looking ahead, inflation is projected to rise notably in Q2 2026, averaging 3.7% for the year versus a 3.5% estimate in February, before gradually moderating to 3.4% in 2027. Meanwhile, domestic activity remained subdued. Real growth is expected at 2.6% in 2026 and 2.9% in 2027, both below December's estimates of 3.8% and 4.3%, respectively.
2026-04-29
Namibia Leaves Policy Rate Unchanged at 6.5%
The Bank of Namibia kept its benchmark repo rate unchanged at 6.5% in February 2026, as in December, as it sought to safeguard the Namibian dollar’s peg to the South African rand and support domestic growth. The MPC pointed out that the sustained exchange rate appreciation has played a key role in curbing inflation, which remains well contained. In 2025, average inflation fell to a post-pandemic low of 3.5%, down from 4.2% the previous year, coming in slightly below the central bank's earlier forecast of 3.6%. Inflation continued to ease for the third month to 2.9% in January 2026, the lowest level since February 2021. Reflecting this trend, the 2026 forecast has been revised down to 3.5%, with 2027 expected at 3.4%. Meanwhile, policymakers highlighted that economic activity slowed in the first three quarters of 2025, led by agriculture, fishing, mining, and manufacturing, with high-frequency indicators pointing to subdued growth in 2025.
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Namibia Holds Key Policy Rate at 6.5%
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