The Bank of Namibia left its benchmark repo rate steady at 6.5% during its December 2025 meeting, following a 25 bps reduction in October, aiming to safeguard the Namibian Dollar’s peg to the South African Rand while supporting domestic growth. Policymakers highlighted ongoing global policy uncertainty and potential risks to the domestic economy. While welcoming South Africa’s lower inflation target as supportive of Namibian price stability, the central bank stressed that South Africa’s formal 3% target requires vigilance in managing domestic inflation to protect the exchange rate peg.