Bank of Namibia raises repo rate to 7%

The Bank of Namibia has increased its repo rate by 25 basis points to 7.00%, which subsequently raises the prime lending rate to 10.50%. The decision was made unanimously by the Monetary Policy Committee to combat rising inflationary pressures and protect the Namibia Dollar’s one-to-one peg with the South African Rand.

Governor Ebson Uanguta stated the move is intended to reduce the interest rate gap between Namibia and South Africa, thereby stemming potential capital outflows and safeguarding international reserves. The central bank noted that inflation accelerated to 5.4% in September 2026, driven largely by rising fuel and transport costs.

The rate hike comes amid a softening economic outlook, with the Ministry of Finance revising Namibia’s 2026 growth forecast down from 3.1% to 2.3%. Borrowers with variable-rate loans, including home and vehicle finance, are expected to face higher monthly repayments.