Windhoek: The Bank of Namibia (BoN) has maintained the repo rate at 6.75 percent for the next two months. The central bank announced this decision on Wednesday, stating that the unchanged rate aims to sustain the peg between the Namibian Dollar and the South African Rand, while also supporting the domestic economy amidst global policy uncertainties.
According to Namibia Press Agency, BoN Governor Johannes !Gawaxab explained that the decision followed a thorough review of domestic, regional, and global economic trends. !Gawaxab highlighted that domestic economic growth was observed in 2024 and persisted into the first two months of 2025. Although there was a recent increase, domestic inflation remained well-contained, and growth in Private Sector Credit Extension was subdued and largely unchanged from the previous Monetary Policy Committee (MPC) meeting.
!Gawaxab noted improvements in the merchandise trade deficit and affirmed that the stock of international reserves was sufficient to maintain the currency p
eg and meet international financial commitments. The Gross Domestic Product growth for 2025 is projected to be between 3.5 percent and 4.0 percent, slightly weaker than previously forecasted.
The governor also pointed out that downside risks have intensified, primarily due to global policy uncertainties and escalating trade wars. Other significant external risks include geopolitical tensions and persistently low international diamond prices. Internally, challenges such as delays in infrastructure upgrades and rehabilitation, rain-induced damage, outbreaks of animal health diseases, and water supply interruptions in coastal towns may pose further risks to the domestic economic outlook.