Namibia Interest Rate

Namibia's central bank kept its key lending rate unchanged at 6.75% following the conclusion of a two-day meeting on April 16, 2025, after four consecutive rate cuts. Policymakers stated that the decision aims to continue safeguarding the peg between the Namibian Dollar and the South African Rand, while also supporting the domestic economy amidst heightened global policy uncertainty. The central bank noted that the domestic disinflationary process began to reverse since the last MPC meeting, with inflation rising to 4.2% in March 2025, up from 3.2% in January 2025. The average inflation forecasts for 2025 and 2026 have been revised up to 4.2% and 4.5%, respectively, from previous forecasts of 4.0% and 4.4%. Meanwhile, real GDP growth for 2025 is expected to be between 3.5% and 4.0%, slightly lower than the previous MPC forecast, as downside risks to the outlook have increased, driven by rising global policy uncertainty and escalating trade tensions.