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Bank of Namibia

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Find out more about BoN Welcomes Reduction in Interest Rate Spread.

BoN Welcomes Reduction in Interest Rate Spread
03 October 2025 | Media Release
 

The Bank of Namibia welcomes the recent actions by commercial banks to reduce the spread between the repo rate and prime rates (including mortgage rate and any other lending rate), in line with the Bank’s guidance to narrow this margin by a total of 25 basis points.

The adjustment is being implemented in two phases: the first reduction of 12.5 basis points took effect as of September 30, 2025, and a further 12.5 basis point reduction is expected to take effect by December 31, 2025.

This policy measure aims to narrow Namibia’s historically wide interest rate margins, thereby making credit more affordable for households and businesses. By lowering borrowing costs, the Bank seeks to stimulate domestic economic activity, support investment, and ease financial pressures on consumers.

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