Namibia’s central bank forecasts an increase in the inflation rate for this year and the next. The bank cited heightened global policy uncertainty as a cause.
Following four successive rate cuts, the bank decided to maintain the repo rate at 6.75%.
At its most recent policy meeting in February, the Bank of Namibia projected 4.0% growth for the Southern African nation’s economy, but this year’s growth was only 3.5% to 4.0%.
“Downside risks to the outlook have increased, mainly due to increased global policy uncertainty and growing trade wars,” the statement read.
Fears of a worldwide recession have been aroused by U.S. President Donald Trump’s tariffs, which have shook financial markets.
According to Namibia’s central bank, the protection of the peg between the Namibian dollar and the South African rand was another goal of its most recent policy move.
It raised its average inflation prediction for 2026 from 4.4% to 4.5% and for this year from 4.0% to 4.2%.
“The upward revision is primarily due to a weaker exchange rate and higher administered price assumptions,” it said.
From 3.6% in February to 4.2% in March, annual consumer inflation increased.
