Monetary Policy Statement August 2026

REPO RATE MAINTAINED AT 6.75 PERCENT

On 10 and 11 August 2026, the Monetary Policy Committee (MPC) of the Bank of Namibia held its fourth bi-monthly meeting of 2026 to decide on the appropriate monetary policy stance for the next two months. Guided by a comprehensive assessment of the latest economic indicators and mindful of the need to safeguard the peg between the Namibia Dollar and the South African Rand, the MPC unanimously decided to maintain the Repo rate at 6.75 percent.

RECENT ECONOMIC DEVELOPMENTS

Global economic activity moderated since the previous MPC meeting, while growth prospects remained largely unchanged. Monitored stock markets strengthened, while bond yields broadly increased. Most key commodity prices rose relative to their levels at the previous MPC meeting. Inflation eased across most monitored economies, while policy rates remained broadly steady.

1. Available indicators suggest that growth held firm in several monitored economies during the second quarter of 2026. Despite slowing, growth remained relatively solid in the United States (US) and China, while economic activity improved in the Euro Area. Overall, the global economy appears to have weathered the ongoing negative supply shock better than initially projected, partly due to investments in technology.

2. Looking ahead, global growth is forecast to remain broadly unchanged relative to the previous outlook. In particular, the International Monetary Fund (IMF) in its July 2026 World Economic Outlook, projected growth to slow from 3.5 percent in 2025 to 3.0 percent in 2026 before recovering to 3.4 percent in 2027. Risks to the outlook remain tilted to the downside, particularly stemming from potential re-escalation of geopolitical tensions in the Middle East. Moreover, commodity price volatility, eroded policy buffers, and supply shortages could further drag on global growth.