BoN Maintains 6.75% Repo Rate as Economic Risks Mount
By TUW
Namibia’s economic growth outlook has weakened, prompting the Bank of Namibia (BoN) to lower its 2026 growth projection while leaving the repo rate unchanged at 6.75%.
The country’s economy is now expected to expand by 2.1% in 2026, which is 0.5 percentage points lower than the previous forecast. The central bank said the revision reflects contractions expected in key primary industries.
Despite the weaker growth outlook, the Monetary Policy Committee (MPC) unanimously decided to maintain the repo rate at 6.75%.
Bank of Namibia Governor Ebson Uanguta explained that keeping the rate unchanged was necessary to help safeguard the currency arrangement between the Namibian Dollar and the South African Rand.
The central bank also identified several factors that could place further pressure on economic activity. These include slower global economic growth, Foot-and-Mouth Disease outbreaks in neighbouring countries and the potential emergence of El Niño conditions.
The latest decision highlights the Bank of Namibia’s balancing act between supporting economic stability and responding to weaker growth prospects, while continuing to protect the country’s exchange-rate arrangement.
