The Bank of Namibia on Wednesday announced the Monetary Policy Committee (MPC) decision to maintain the repo rate at 6.50%, following extensive deliberations.

The central bank, in an announcement, said the decision ensures that the cost of borrowing remains steady for the time being. Consequently, commercial banks across Namibia are expected to keep their prime lending rates at 10.00%.

According to the central bank, the committee further noted the escalation of geopolitical tensions in the Middle East, mindful of uncertainties regarding the duration of the war and the intensity of the spillover effects thereof.

While maintaining a cautious stance, the MPC further noted recent policy measures to insulate the domestic economy from the energy-price shock, which could moderate the inflation outlook over the short term.

Looking ahead, the central bank said inflation is projected to rise notably in the second quarter of 2026 to record an average of 3.7% for the year, before moderating to 3.4% in 2027. The 2026 forecast has been revised upward by 0.2 percentage points, on assumptions of higher oil and food prices, alongside a volatile currency.