The Bank of Namibia held its benchmark repo rate steady at 6.75 percent at its April 10th 2019 meeting, to help spur growth. The Namibian GDP contracted 0.1 percent in 2018 and 0.9 percent in 2017 mainly due to lower agricultural output. Policymakers noted that activity remained subdued in the first two months of 2019, reflected in sectors such as mining, agriculture and construction. And as other sectors, including transport and communication, wholesale and retail trade and manufacturing improved during the same period, the economy is projected to grow marginally in 2019. The annual inflation slowed to a six-month low of 4.4 percent in February 2019 from 4.7 percent in the previous month. Interest Rate in Namibia averaged 7.07 percent from 2007 until 2019, reaching an all time high of 10.50 percent in May of 2007 and a record low of 5.50 percent in August of 2012.
Interest Rate in Namibia is expected to be 6.75 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 6.50 in 12 months time. In the long-term, the Namibia Interest Rate is projected to trend around 5.75 percent in 2020, according to our econometric models.