Windhoek: The Monetary Policy Committee (MPC) of the Bank of Namibia (BoN) has decided to reduce the Repo rate by 25 basis points to 6.50 per cent. BoN Governor Johannes !Gawaxab announced the MPC decision in the capital on Wednesday.

According to Namibia Press Agency, !Gawaxab stated, "Domestic economic activity has weakened. Inflation remains subdued, while growth in Private Sector Credit Extension (PSCE) has improved further, although it remains relatively weak." He also highlighted that the merchandise trade deficit has narrowed, and international reserves are adequate to maintain the currency peg and meet Namibia's international financial obligations.

!Gawaxab explained that real GDP growth declined to a post-pandemic low of 1.6 per cent year-on-year in the second quarter of 2025, compared to 3.3 per cent during the same period in 2024. "This poor performance was primarily observed in the manufacturing, fishing, and agriculture sectors," he noted.

Annual inflation remains contained, averaging 3.6 per cent during the first eight months of 2025, compared to 4.6 per cent during the same period in 2024, !Gawaxab said.