The Bank of Namibia slashed its benchmark interest rate by another 25 bps to a record low of 3.75% during its meeting in August of 2020, following the South African Reserve Bank's interest rate cut by the same margin in July. Policymakers said the current stance is appropriate to continue supporting the economy amid low inflationary pressures and maintain the one-to-one link between the Namibian dollar and the South African rand. The economy is expected to contract by 7.8% in 2020, mainly attributed to the Covid-19 outbreak which affected key sectors such as hotels & restaurants, mining, transport & storage, manufacturing, wholesale & retail trade, financial services and construction. Meanwhile, the GDP is seen recovering to growth rates of 2.1% and 2.7% in 2021 and 2022, respectively. Headline inflation remained unchanged for the third consecutive month at 2.1% in July, well below 3.6% a year before; and it is projected to average around 2% in 2020.
Interest Rate in Namibia averaged 6.95 percent from 2007 until 2020, reaching an all time high of 10.50 percent in May of 2007 and a record low of 3.75 percent in August of 2020. This page provides the latest reported value for - Namibia Interest Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news. Namibia Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on October of 2020. source: Bank of Namibia
Interest Rate in Namibia is expected to be 3.75 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Namibia to stand at 3.50 in 12 months time. In the long-term, the Namibia Interest Rate is projected to trend around 3.25 percent in 2021, according to our econometric models.