Namibia’s central bank has maintained its benchmark repo rate at 6.50%, marking the third consecutive meeting where policymakers have opted to hold rates steady. This decision reflects a cautious monetary policy stance as inflation remains subdued for now but faces upside risks from geopolitical tensions and global oil market volatility.

The Bank of Namibia kept its main interest rate unchanged at 6.50%, citing low but potentially rising inflation risks linked to global developments. Annual inflation eased to 2.1% in March 2026, down from 2.4% in February, marking the lowest inflation level since 2020.

Policymakers, however, expect inflation to gradually rise in the coming months. The decision represents the third straight hold by the central bank. To cushion households and businesses from global fuel cost pressures—partly driven by geopolitical tensions in the Middle East—Namibia’s government also reduced fuel levies by 50% for three months, ending in June 2026.

The decision comes against the backdrop of rising global uncertainty in energy markets, which has kept central banks in emerging and developing economies cautious about easing monetary policy too quickly. Higher global oil prices, driven by geopolitical tensions involving the U.S. and Iran, have raised concerns that inflationary pressures could re-emerge even in economies currently experiencing price stability.

Across Africa, central banks have taken different policy approaches in response to similar risks.