The repo rate will remain unchanged at 6.75%, supported by positive economic momentum during the first six months.

Sectors such as mining, tourism, wholesale and retail trade and communication, as well as crop farming and electricity, have recorded growth.

The move aims to protect the country's peg with the South African rand and sustain local economic activity.

Delivering the fourth Monetary Policy decision this morning, Governor Johannes !Gawaxab said, "In accordance with the guidance note issued by the Bank of Namibia in June, commercial banks are expected to reduce their prime lending rates by 12.5 basis points to 10.375% by the end of September 2025. The normalisation in the prime-repo spread that is in the pipeline is expected to provide support for domestic economic activity and credit growth going forward."

!Gawaxab noted that inflation eased to 3.6% in 2025 compared to 4.8% in 2024 during the same period, largely driven by lower inflation in housing and alcoholic beverages and deflation in transport.

Real GDP growth is now projected at 3.5% for 2025 and 3.9% for 2026, slightly lower than the previous forecast.

Namibia's merchandise trade deficit dropped by 28.2%, shrinking to N$12.8 billion in the first half of 2025, mainly driven by strong export growth in uranium, offsetting the rise in imports.

"The stock of international reserves remains adequate, rising to N$58.1 billion at the end of July 2025 from N$57.4 billion at the end of May 2025, aided by SACU receipts. This level of foreign reserves translates to an estimated import cover of 3.8 months, which is considered adequate to sustain the currency peg between the Namibia Dollar and the South African Rand and meet the country's international financial obligations."

Meanwhile, the South African Reserve Bank recently cut its repo rate, narrowing the interest rate gap between the two countries.

Namibia's rate now sits at 25 basis points below that of South Africa, a move the governor says supports local growth without undermining capital stability.