Bank of Namibia expected to raise repo rate to 7%

The Bank of Namibia is anticipated to increase its benchmark repo rate by 25 basis points to 7% during its Monetary Policy Committee meeting on October 28. This move is expected as a response to accelerating inflation, rising oil prices, and pressure on foreign exchange reserves.

Economic analysts suggest the rate hike aims to contain inflation and protect the Namibian dollar’s peg to the South African rand. Namibia faces vulnerability due to its dependence on imported petroleum, which impacts transport and consumer costs. Additionally, a widening trade imbalance—driven by a 12.9% increase in imports against a 0.3% increase in exports—has placed pressure on reserves.

In a separate development, Bank of Namibia Governor Ebson Uanguta met with President Netumbo Nandi-Ndaitwah to brief the presidency on the state of the economy. The discussions covered growth prospects, inflation outlooks, and strategic initiatives such as the Sovereign Wealth Fund, gold acquisition programmes, and preparations for the nation’s emerging oil and gas industry.