Namibia’s 7% rate adds N$4,000 to home loan costs
By the AFREEQUE newsroom, based on Windhoek Observer
The Namibian repo rate’s rise to 7% has increased annual repayments on a typical N$1 million home loan by about N$4,000 since the hiking cycle began. The Bank of Namibia raised its rate by 25 basis points on 28 October, taking commercial banks’ prime rate to 10.50%, according to the Windhoek Observer.
The Bank of Namibia raised its repo rate by 25 basis points to 7% on 28 October 2026. The increase brings the annual rise in repayments on a typical N$1 million home loan to about N$4,000 since the start of the hiking cycle, the Windhoek Observer reports.
The increase brings commercial banks’ prime lending rate to 10.5%. For a N$1 million loan repaid over 20 years, monthly repayments rise by about N$168; the cumulative increase since the start of the cycle has reached about N$334 a month. The Bank of Namibia is seeking in particular to protect the Namibian dollar’s parity with the South African rand and contain inflationary pressures linked to rising fuel prices.
The decision follows a N$1.50-per-litre increase in petrol prices at the beginning of the month and a 3.7% increase in NamPower’s electricity tariff. The country recorded a trade deficit of N$33.5 billion between January and August. The Bank of Namibia forecasts growth of 2.1% in 2026.
Simonis Storm Research considers monetary policy to remain slightly restrictive and expects the central bank to keep rates unchanged at its final meeting of the year, on 8 December. The firm nevertheless anticipates headline inflation of close to 6.2% around the turn of the year. The 28 October decision was the second increase in the cycle, following the June rise that brought the rate to 6.75%.
The increase follows the repo rate rise to 7% announced by the Bank of Namibia on 28 October (the monetary policy decision).
