The repo rate has reduced by 25 basis points to seven percent. 

During the final monetary policy meeting of the year, Bank of Namibia Governor Johannes ǃGawaxab says the move is aimed at supporting domestic economic activity while maintaining the stability of the dollar, which remains pegged to the South African Rand.

!Gawaxab noted that Namibia's economic decision follows a thorough review of domestic and global conditions, with inflation declining and private sector credit growth improving despite remaining subdued.

Despite inflation easing, external risks such as geoeconomic fragmentation remain a challenge. 

Namibia's economy has shown resilience in 2024, with real GDP growth revised to 3.5%, driven by strong performance in mining, trade, tourism, and electricity. 

However, diamond production and construction faced difficulties.

Inflation fell to 4.5% in the first 10 months, with October 2024 at 3%, the lowest since February 2021. 

The merchandise trade deficit widened to N$31.6 billion by October, mainly due to higher imports, though exports of uranium and gold helped.

The move, ǃGawaxab says, is also expected to lead to a reduction in lending rates by commercial banks, bringing the prime lending rate down to 10.75%.

While Namibia faces ongoing risks such as external geopolitical tensions and domestic challenges like drought conditions, !Gawaxab is optimistic about the country's economic outlook, with international reserves standing at N$60.9 billion.

The MPC is prepared to modify monetary policy as needed to protect the country's economic stability and support a growth-friendly environment.