The Bank of Namibia has announced the maintenance of the repo rate at 7.75 percent, a decision coming on the heels of the recent drop in local fuel prices.

This move is expected to bring a sigh of relief across the nation amid economic challenges.

Central bank Governor Johannes !Gawaxab, at the year's sixth Monetary Policy announcement, explained the decision as based on supporting the domestic economy and safeguarding the one-on-one peg between the Namibian dollar and the South African Rand.

The repo rate has stayed put over the last three of six monetary policy decisions announced this year.

Since August, though, the BoN has kept the repo rate fixed at 7.75 percent.

External factors remain a driving force behind a weakening global economy, including tighter monetary policies, geopolitical tensions, economic fragmentation, and the fallout of load shedding in South Africa.

Average inflation is further expected to be steady, with the BoN foreseeing a decline in 2024 to 4.8 percent.