It is hard to believe that we are approaching the midpoint of 2026, which simultaneously marks 6 months since assuming my role as Governor. The global economic outlook continues to remain resilient, although marked by an ever-evolving landscape. This changing landscape brings in complexities for policymakers, especially when there is uncertainty on whether a shock is short-lived or longer-lasting, hindering appropriate policy adjustments. In my initial blog post following the February Monetary Policy Committee (MPC) decision, I emphasised that Namibia does not operate in isolation. As a small open economy, we remain highly susceptible to external shocks and vulnerabilities that typically materialise through various transmission channels.
It is hard to believe that we are approaching the midpoint of 2026, which simultaneously marks 6 months since assuming my role as Governor. The global economic outlook continues to remain resilient, although marked by an ever-evolving landscape. This changing landscape brings in complexities for policymakers, especially when there is uncertainty on whether a shock is short-lived or longer-lasting, hindering appropriate policy adjustments. In my initial blog post following the February Monetary Policy Committee (MPC) decision, I emphasised that Namibia does not operate in isolation. As a small open economy, we remain highly susceptible to external shocks and vulnerabilities that typically materialise through various transmission channels.

Climate change and nature degradation are becoming harder for central banks and supervisors to regard as matters outside their mandate. Their relevance arises from the ways in which they affect macroeconomic conditions, financial stability and the functioning of the financial system.

Physical climate events, including droughts, floods and extreme weather, can disrupt production, damage infrastructure and increase volatility in sectors such as agriculture, energy and transport. These disruptions can place pressure on prices, affect output and add complexity to the conduct of monetary policy. At the same time, climate and nature-related risks can weaken asset and collateral values, expose vulnerabilities in the banking sector and reduce the resilience of the wider economy. In this sense, the question for central banks is no longer whether these issues matter, but how to address them in a way that remains firmly anchored in their mandates.