Bank of Namibia holds repo rate at 6.75% as July inflation stays at 4.4%

The Bank of Namibia left its benchmark repo rate unchanged at 6.75% at its August 2026 meeting, after a 25 basis point increase in June, saying the stance would support international reserves and preserve the Namibian dollar's one-to-one peg to the South African rand. Annual inflation held at 4.4% in July 2026, unchanged from June and the highest reading since August 2024. Transport remained the main source of price pressure, rising 9.3% in July, while hotels, cafés and restaurants rose 6.2%, recreation and culture 5.6%, and housing and utilities and health 4.8% each. Monthly CPI growth slowed to 0.1% in July from 0.3% in June. The central bank said domestic inflationary pressures remained elevated and forecast inflation at 4.0% in 2026, up from 3.5% in 2025, before easing to 3.9% in 2027; the 2027 projection was revised up by 0.3 percentage point amid prolonged Middle East tensions.

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