Namibia Interest Rate

Namibia's central bank maintained its key lending rate steady at 6.75% during its August 2025 meeting, marking a third straight hold since April. Policymakers said the decision was designed to safeguard the Namibian Dollar’s peg to the South African Rand while supporting domestic growth. By standing pat following South Africa’s July rate cut, Namibia has further closed the interest rate gap, with its repo rate now 25 basis points lower—an advantage the MPC believes will aid growth while preserving capital flow stability. Namibia's inflation rate edged down to 3.5% in July 2025 from 3.7% in June. Inflation is forecast to average 3.8% in 2025 and 4.2% in 2026, each 0.1 percentage point below earlier projections, reflecting lower assumed crude oil prices. Real GDP growth is forecast at 3.5% in 2025 and 3.9% in 2026, revised down 0.3 and 0.1 percentage points from April, reflecting a slowdown in primary industries—especially livestock restocking.