Bank of Namibia Raises Repo Rate to 7.00% Amid Rising Inflation
The Bank of Namibia has increased its repo rate by 25 basis points to 7.00%, a move that could lead to higher borrowing costs for consumers and businesses.
The decision, announced by Bank of Namibia Governor Ebson Uanguta, brings the prime lending rate to 10.50%. The central bank said the increase aims to contain inflation, protect the Namibia Dollar’s one-to-one peg with the South African Rand and limit potential capital outflows.
Namibia’s annual inflation rose to 5.4% in September 2026, up from June’s level, largely driven by higher transport costs. Inflation is projected to average 4.2% in 2026 before easing slightly to 4.0% in 2027.
The central bank also warned that the domestic economy faces challenges, including the outbreak of foot-and-mouth disease, weaker global growth prospects and the possibility of El Niño conditions.
Despite these risks, economic growth is forecast to improve from 1.7% in 2025 to 2.1% in 2026 and 2.8% in 2027, supported by expected recoveries in agriculture and manufacturing.
Meanwhile, Namibia’s international reserves increased to N$59.3 billion at the end of September, up from N$58 billion in July. The reserves provide an estimated 3.6 months of import cover and remain sufficient to support the currency peg and meet international financial obligations.
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