The Bank of Namibia kept its benchmark repo rate unchanged at 6.5% in February 2026, as in December, as it sought to safeguard the Namibian dollar’s peg to the South African rand and support domestic growth. The MPC pointed out that the sustained exchange rate appreciation has played a key role in curbing inflation, which remains well contained. In 2025, average inflation fell to a post-pandemic low of 3.5%, down from 4.2% the previous year, coming in slightly below the central bank's earlier forecast of 3.6%. Inflation continued to ease for the third month to 2.9% in January 2026, the lowest level since February 2021. Reflecting this trend, the 2026 forecast has been revised down to 3.5%, with 2027 expected at 3.4%. Meanwhile, policymakers highlighted that economic activity slowed in the first three quarters of 2025, led by agriculture, fishing, mining, and manufacturing, with high-frequency indicators pointing to subdued growth in 2025.
