STAFF WRITER
Bank of Namibia Governor Johannes !Gawaxab on Wednesday kept the Repo Rate unchanged at 6.7%, giving a sigh of relief to Namibians servicing long term loans.
The apex bank said the key reason for maintaining the repurchase rate unchanged was to continue safeguarding the local currency’s one on one peg with the South African Rand.
Announcing the latest Monetary Policy for the next quarter, the apex bank chief said the decision was also taken to support the domestic economy.
“ The domestic economy maintained positive momentum during the first six months of 2025. Domestic inflation has remained subdued since the previous MPC meeting, while growth in Private Sector Credit Extension (PSCE) improved further. The merchandise trade deficit has continued to narrow, while the stock of international reserves has remained sufficient to maintain the currency peg and meet the country’s international financial obligations,” !Gawaxab said.
The repo rate (repurchase rate) is the interest rate at which the central bank lends money to commercial banks when there is a shortage of funds. In simpler terms, it is the rate at which banks borrow money from the central bank for short-term needs, usually against government securities.
The apex bank chief reiterated that real Gross Domestic Product (GDP) growth is projected at 3.5 percent for 2025 and 3.9 percent for 2026.
“This forecast represents downward revisions of 0.3% point for 2025 and 0.1 percentage point for 2026 compared to the April 2025 forecast. The revision to the 2025 growth is largely ascribed to a contraction in primary industries, particularly the livestock subsector on account of restocking activity,” he said.
The apex bank governor said Namibia’s merchandise trade deficit has narrowed by 28.2% to N$12.8 billion during the first six months of 2025, compared to the same period in 2024.
“ The narrower trade deficit was due to a substantial rise in export earnings, predominantly from uranium and gold, compared to the moderate increase in import payments,” he said.
According to the central bank 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.
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