Namibia Interest Rate

The Bank of Namibia cut its benchmark repo rate by 25bps to 6.5% during its October 2025 meeting, aiming to support the domestic economy while safeguarding the peg between the Namibia Dollar and the South African Rand. Annual GDP growth has surprised on the downside, slowing to a post-pandemic low of 1.6% in the second quarter from 2.8% in the previous quarter, largely due to weak performance in the manufacturing, fishing, and agriculture sectors. Economic growth for 2025 is now projected to weaken from the 3.7% recorded in 2024, with downside risks becoming more pronounced. Meanwhile, inflation remains well contained, averaging 3.6% during the first eight months of the year. Inflation forecasts for both 2025 and 2026 have been revised down by 0.2 percentage point to 3.6% and 4.0%, respectively, reflecting a stronger exchange rate assumption and a lower oil price outlook.