The Bank of Namibia left its benchmark repo rate unchanged at 6.5% during its April 2026 meeting, marking the third consecutive hold, in a bid to preserve the Namibian Dollar’s peg to the South African Rand while supporting the domestic economy. Policymakers noted that while inflation remained contained during the first quarter, risks to the outlook are skewed to the upside, driven by administered price pressures, exchange rate volatility, and spillovers from the prolonged Middle East conflict. The annual inflation rate eased to 2.1% in March, the lowest since July 2020, from 2.4% in the prior month, marking a fifth consecutive month of slowdown. Looking ahead, inflation is projected to rise notably in Q2 2026, averaging 3.7% for the year versus a 3.5% estimate in February, before gradually moderating to 3.4% in 2027. Meanwhile, domestic activity remained subdued. Real growth is expected at 2.6% in 2026 and 2.9% in 2027, both below December's estimates of 3.8% and 4.3%, respectively.