Namibia Interest Rate

Namibia's central bank held its key lending rate steady at 6.75% during its June meeting, citing the need to preserve the currency peg between the Namibian dollar and the South African rand while supporting domestic economic growth. Policymakers noted that inflation remains well-contained, easing slightly to a four-month low of 3.5% in May 2025. At the same time, economic activity expanded in the first four months of 2025, though at a slower pace than during the same period last year. Full-year real GDP growth is projected at 3.8%, a slight improvement from 3.7% in 2024. However, downside risks persist, including the ongoing Israel-Iran conflict, broader geopolitical tensions, tariff restrictions, and domestic water shortages. In light of these uncertainties, the central bank maintained a cautious policy stance.