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

In its June meeting, Namibia's central bank decided to maintain the key lending rate at 6.75%. This decision reflects the dual objective of maintaining the currency peg between the Namibian dollar and the South African rand, while also fostering domestic economic growth. Policymakers observed that inflation is under control, having eased to a four-month low of 3.5% in May 2025. Meanwhile, economic activity experienced growth in the first four months of 2025, although the pace was slower than the corresponding period of the previous year. The central bank projects the full-year real GDP growth to reach 3.8%, slightly up from 3.7% in 2024. Nevertheless, there are ongoing risks, such as the Israel-Iran conflict, broader geopolitical tensions, tariff barriers, and domestic water shortages. Given these uncertainties, the central bank opted to maintain a cautious policy approach.