The Bank of Namibia has kept its key repurchase (repo) rate unchanged at 6.75%, aiming to preserve the one-to-one peg between the Namibian Dollar and the South African Rand while supporting economic growth.

The decision, made during the bank’s bi-monthly Monetary Policy Committee meeting on 11–12 August, follows a comprehensive review of domestic and international economic trends.

Governor Johannes Gawaxab said the Namibian economy maintained positive momentum in the first half of 2025. Inflation remained low, private sector lending strengthened, and the merchandise trade deficit continued to narrow. The country’s stock of international reserves is sufficient to uphold the currency peg and meet foreign obligations.

Economic expansion was driven by mining, tourism, and other key sectors. Real GDP growth is projected at 3.5% this year and 3.9% in 2026, slightly below earlier forecasts due to ongoing challenges in primary industries, particularly livestock, which is still recovering from last year’s drought.

In line with prior guidance, commercial banks are expected to reduce prime lending rates by 12.5 basis points to 10.375% by the end of September 2025.