FX.co ★ Namibia Holds Key Policy Rate at 6.75%

The central bank of Namibia decided to maintain its key lending rate at 6.75% after concluding a two-day meeting on April 16, 2025. This decision follows four consecutive rate cuts. Policymakers emphasized that this move is intended to preserve the peg between the Namibian Dollar and the South African Rand while supporting the domestic economy amid increasing global policy uncertainty. The central bank observed a reversal in the domestic disinflationary trend since the last Monetary Policy Committee meeting, with inflation climbing to 4.2% in March 2025, compared to 3.2% in January 2025. The average inflation projections for 2025 and 2026 have been adjusted upwards to 4.2% and 4.5%, respectively, from earlier estimates of 4.0% and 4.4%. In the meantime, the forecasted real GDP growth for 2025 is anticipated to range between 3.5% and 4.0%, slightly below the previous committee forecast, as downside risks to the economic outlook have intensified. This is largely due to increasing global policy uncertainties and escalating trade conflicts.