Windhoek: The Bank of Namibia's (BoN) Monetary Policy Committee has decided to keep the repo rate unchanged at 6.5 per cent. The announcement was made on Wednesday by BoN Governor Johannes !Gawaxab during the sixth and final Monetary Policy Announcement of the year.

According to Namibia Press Agency, !Gawaxab stated that the decision aims to continue safeguarding the peg between the Namibian Dollar and the South African Rand while supporting the domestic economy. He noted that inflation remains contained, with a slowdown in the growth of Private Sector Credit Extension (PSCE) since the previous MPC meeting.

Annual inflation averaged 3.6 per cent during the first 10 months of 2025, compared to the 4.5 per cent recorded during the same period in 2024. The disinflation was primarily observed in the categories of housing, transport, and alcoholic beverages. However, inflation rose slightly to 3.6 per cent in October 2025, from 3.5 per cent in September.

The inflation projection for 2025 remains stable at 3.6 per cent, while the forecast for 2026 has been revised downward by 0.2 percentage points to 3.8 per cent. This revision reflects a stronger exchange rate assumption and a favorable oil price outlook. Risks to the outlook include exchange rate volatility and potential increases in administered and oil prices.