No Change for Your Wallet: Bank of Namibia Holds Repo Rate at 6.5%
In a move that brings a sigh of relief to Namibian homeowners and business owners alike, the Bank of Namibia (BoN) announced today that it is keeping the repo rate steady at 6.5%.
What this means in plain language is that your monthly bank repayments on car loans, mortgages, and personal debt should stay exactly where they are for now. With the prime lending rate remaining at 10%, the central bank has chosen a path of stability during what is becoming an increasingly shaky time for the global economy.
Speaking at today’s announcement following the Monetary Policy Committee (MPC) meeting, Governor Ebson Uanguta made it clear that while our local economy is holding its own, the world around us is getting complicated.
The decision to hold the rate wasn’t just about local prices; it was a strategic move to protect the Namibia Dollar’s one-to-one link with the South African Rand. By keeping our rate just slightly below South Africa’s—which currently sits at 6.75% the Bank is ensuring that money stays within our borders rather than flowing out to our neighbors in search of higher returns.
However, there are growing shadows on the horizon. The Bank is keeping a very close watch on the escalating geopolitical tensions in the Middle East. Governor Uanguta warned that these international conflicts are a primary driver of global uncertainty, with the potential to push up fuel prices and disrupt supply chains shocks that would eventually hit the pockets of every Namibian consumer.
Notably, the Governor pointed out that the government’s recent decision to slash the fuel levy by 50% starting this April has helped cushion the blow, but the long-term outlook remains cautious.
On the home front, the news is a bit of a mixed bag. Our inflation has actually been cooling down, hitting a five-month low of 2.1% in March. While that is good news for shoppers, the broader economy is feeling the pinch.
Growth slowed to just 1.7% in 2025, largely because our mining and agricultural sectors haven’t been firing on all cylinders. Because of these “external shocks” and water supply challenges affecting our mines, the Bank has even trimmed its growth forecast for this year to 2.6%.
The good news is that Namibia’s “savings account” is looking healthy. International reserves have climbed to approximately N$51.9 billion, providing about 3.3 months of import cover. This gives the country a solid cushion to defend our currency and meet our international obligations even if global markets get rocky.
For now, the Bank of Namibia has decided that the best course of action is to stay the course. We won’t see the interest rate cuts some were hoping for, but we also aren’t facing a hike. It’s a “steady as she goes” approach that prioritizes protecting our currency and keeping the financial system predictable as we head into the middle of the year.
The next time the committee meets to decide our financial fate will be on June 17, 2026. Until then, Namibian borrowers can breathe easy knowing their bank balances won’t face any new surprises from the central bank.
