Bank of Namibia raises repo rate by 25 basis points
Annual home loan repayments increase by N$4 000 as prime lending rate hits 10.50%
The Bank of Namibia increased its repo rate by 25 basis points to 7.00% on 28 October 2026, raising the prime lending rate to 10.50%. This move will increase annual repayments on a typical N$1 million home loan by approximately N$4 000 since the start of the current interest rate hiking cycle. The central bank’s decision aims to protect the Namibia dollar’s peg with the South African rand and manage inflation.
Governor Ebson Uanguta announced the decision following a monetary policy review, noting it restores the traditional 25-basis-point gap between Namibia’s repo rate and South Africa’s policy rate. This helps limit capital outflows and supports currency stability. Households are already facing higher fuel and electricity costs, with petrol prices increasing by N$1.50 per litre and NamPower tariffs by 3.7% in October.
The agricultural sector faces pressure from higher borrowing costs, input prices, and drought risks. The Bank of Namibia forecasts 2.1% economic growth for 2026, but rising costs may affect spending. Analysts expect rates to remain between 10.50% and 10.75% through 2027, with potential cuts later in the year.
Why it mattersNamibian households with home loans will see their annual repayments increase due to the central bank's repo rate hike.