The Central Bank decided to lower the repo rate to support Namibia’s economy and maintain the Namibian Dollar–South African Rand currency peg.
The Monetary Policy Committee (MPC) of the Bank of Namibia held its fifth bi-monthly meeting on 13-14 October 2025, where it decided to cut its main interest rate by 25 basis points to 6.50%.
The decision comes in response to a weakening domestic economy and well-contained inflation. The Bank of Namibia stated that the rate cut aims to stimulate economic activity while maintaining the currency’s peg to the South African rand.
Inflation in Namibia edged up slightly to 3.5% in September from 3.2% in August. However, the central bank revised its inflation forecasts for 2025 and 2026 downward to 3.6% and 4.0%, respectively, citing lower oil price expectations.
