Business Reporter
THE Bank of Namibia has announced that it will be keeping lending rates steady, with the Monetary Policy Committee deciding to maintain the repo rate at 6.50%.
During the announcement, the outgoing central bank governor, Johannes !Gawaxab, said that on the 1st and 2nd of December 2025, the Monetary Policy Committee (MPC) of the Bank of Namibia held its final bi-monthly meeting of 2025 to decide on the appropriate monetary policy stance for the next two months, guided by incoming data and the assessment thereof.
“To continue safeguarding the peg between the Namibia Dollar and the South African Rand, while supporting the domestic economy, the MPC decided to keep the repo rate unchanged at 6.50%. The MPC decided to maintain the repo rate at 6.50 percent. Commercial banks are accordingly expected to keep their prime lending rates at 10.125%. This policy stance is deemed appropriate for safeguarding the one-to-one link between the Namibia Dollar and the South African Rand, while remaining supportive of domestic economic activity,” !Gawaxab said.
He added that in determining the appropriate monetary policy stance, the committee said the prolonged global policy uncertainty and potential risks to the domestic economy.
“Furthermore, the formal adoption of the 3% inflation target by South Africa necessitates additional vigilance by the Namibian authorities in managing domestic inflation to ensure the continued smooth functioning of the exchange rate peg. Despite a deceleration in the pace of domestic economic activity, the overall environment remains positive, with both current and projected inflation well contained and growth set to recover in the medium term. While capital flows were assessed to be orderly and the MPC was gratified by the smooth redemption of the Eurobond, narrowing the interest rate differential with South Africa was equally deemed essential. The normalisation of the prime–repo rate spread, anticipated by the end of the year, is expected to provide further support to the domestic economy, bringing the level of the prime rate to 10.00%,” !Gawaxab said.
PICTURED: Central Bank Governor, Johannes !Gawaxab. Photo: BoN
