The Bank of Namibia has kept interest rates unchanged at 6.50%, citing weak domestic economic activity, subdued credit demand and rising inflation risks linked to global geopolitical tensions.
The central bank’s Monetary Policy Committee (MPC), which met on 27 and 28 April for its second bi-monthly meeting of 2026, unanimously agreed to maintain the repo rate at 6.50% for the next two months.
The decision was announced on Wednesday by Ebson Uanguta and marks his second monetary policy decision since taking over as Governor of the central bank.
Commercial banks are accordingly expected to keep their prime lending rates unchanged at 10.00%.
Bank of Namibia said the decision was necessary to protect the one-to-one peg between the Namibia dollar and the South African rand.
“In determining the appropriate monetary policy stance, the MPC noted weak domestic economic activity and credit extension, amidst a higher inflation forecast for 2026,” the central bank said.
The committee also flagged escalating tensions in the Middle East, warning that a prolonged conflict could intensify inflationary pressures through higher global energy prices.
“The Committee further noted the escalation of geopolitical tensions in the Middle East, mindful of uncertainties regarding the duration of the war and the intensity of the spillover effects thereof,” the central bank said.
However, the MPC said recent policy measures introduced to shield the domestic economy from rising fuel and energy costs could help soften inflation pressures in the short term.
The decision was in line with forecasts from economists surveyed by The Brief, who had largely expected the central bank to leave rates unchanged amid fragile economic conditions and continued global uncertainty.
The next MPC meeting is scheduled for 15 and 16 June 2026.
