FX.co ★ Namibia Holds Key Policy Rate at 6.5%

In its December 2025 meeting, the Bank of Namibia maintained the benchmark repo rate at 6.5%, following a previous reduction of 25 basis points in October. This decision aims to protect the Namibian Dollar's fixed exchange rate with the South African Rand, while also fostering domestic economic growth. Policymakers expressed concerns over the ongoing global policy uncertainties and potential threats to the domestic economy. They acknowledged the beneficial impact of South Africa's reduced inflation target on maintaining price stability within Namibia. However, the central bank emphasized the importance of vigilance in managing domestic inflation, given South Africa's formal 3% target, to ensure the continued stability of the exchange rate peg.