FX.co ★ Namibia Lifts Key Policy Rate to 4.75%

The Bank of Namibia raised its benchmark repo rate by 25 basis points to 6.575% at its May 2026 meeting, following three consecutive meetings at 6.50%. The central bank judged the tighter policy stance appropriate to curb inflationary risks stemming from the energy shock and to support the currency peg between the Namibian dollar and the South African rand. In its assessment, the MPC highlighted mounting global and domestic inflationary pressures in the near term—despite the US–Iran peace agreement—alongside subdued domestic economic activity and weak private sector credit growth. Namibia’s annual inflation rate accelerated for a second consecutive month, reaching 4.1% in May from 3.1% in April, the highest level since March 2025.