FX.co ★ Bank of Namibia Lifts Policy Rate to 7%

The Bank of Namibia raised its benchmark repo rate by 25 bps to 7% at its October 2026 meeting, marking the highest level since January 2025 and following a pause in August. The move is intended to safeguard the Namibian dollar’s one-to-one peg to the South African rand and to contain mounting inflationary pressures. Namibia’s inflation has risen sharply since early 2026, accelerating from 2.1% in March to a more than two-year high of 5.4% in September. In response, inflation forecasts were revised upward to 4.2% for 2026 and 4% for 2027, from previous projections of 4% and 3.9%, respectively, reflecting expectations of a more prolonged energy price shock.