Repo rate remains unchanged at 6.75 percent

WINDHOEK, 16 APR (NAMPA) - The Bank of Namibia (BoN) has kept the repo rate at 6.75 percent for the next two months.
Making the announcement on Wednesday, the central bank said keeping the repo rate unchanged is aimed at continuing to safeguard the peg between the Namibian Dollar and the South African Rand, while supporting the domestic economy amid heightened global policy uncertainty.
BoN Governor, Johannes !Gawaxab, added that the decision was made following a comprehensive review of domestic, regional and global economic developments.
“Domestic economic growth was experienced in 2024 and continued during the first two months of 2025. Despite a recent uptick, domestic inflation appeared to be well-contained. Growth in Private Sector Credit Extension remained subdued and broadly unchanged since the previous Monetary Policy Committee (MPC) meeting,” he noted.
According to !Gawaxab, the merchandise trade deficit improved, and the stock of international reserves remained sufficient to maintain the currency peg and meet the country’s international financial obligations.
Gross Domestic Product growth for 2025, the governor added, is estimated to be around 3.5 percent to 4.0 percent, slightly weaker compared to the forecast during the previous MPC meeting.
Downside risks to the outlook have intensified, primarily driven by elevated global policy uncertainty and escalating trade wars. Other notable external risks include geopolitical tensions and the sustained depressed international diamond prices.
“Internally, delays in the upgrading and rehabilitation of infrastructure, challenges following the recent rain-induced damage, the outbreaks of animal health diseases and water supply interruptions, particularly in coastal towns, may pose downside risks to the domestic outlook,” !Gawaxab maintained.
(NAMPA)
EB/ND