The Central Bank of Namibia decided on Wednesday to leave its main interest rate unchanged, underlining its desire to maintain the local currency's anchoring in the South African Rand, while global risks hamper its ability to relax its monetary policy.

Bank of Namibia maintains its key interest rate at 6.75% The central bank maintains a cautious position as inflation falls and growth continues

Policymakers noted that inflation remains well contained, dropping slightly to a four-month low of 3.5% in May 2025.

At the same time, economic activity grew in the first four months of 2025, although at a slower pace than during the same period last year.

Real GDP growth for the full year is expected to be 3.8%, a slight improvement from 3.7% in 2024.

However, downside risks remain, including the ongoing Israeli-Iranian conflict, wider geopolitical tensions, tariff restrictions, and water shortages in the country.

In light of these uncertainties, the central bank maintained a prudent monetary policy.