Namibia’s central bank maintains caution despite easing price pressures, aligning policy with regional trends and South African influences.
The Bank of Namibia kept its benchmark rate at 6.50% following its first 2026 Monetary Policy Committee meeting under Governor Ebson Uanguta. Annual headline inflation eased to 2.9% in January, down from 3.2% last year, while core inflation remained slightly higher at 3.2%, indicating persistent underlying pressures.
Namibia’s dollar is pegged to the South African rand, requiring policy coordination with the South African Reserve Bank. With South Africa’s inflation at 3.5% and markets anticipating a potential rate cut, Windhoek is exercising prudence, prioritising currency stability and alignment with regional monetary conditions.
The decision reflects a broader trend across Southern Africa, where central banks are balancing disinflation with external risks before easing rates.
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