Namibian borrowers are expected to save at least N$314 million annually following a 25-basis-point reduction in commercial banks’ lending rates implemented by December 2025, minister of finance Ericah Shafudah revealed last week.
The adjustment, directed by the Bank of Namibia, narrowed the prime-minus-seven repo spread from 3.75% to 3.50%, lowering borrowing costs for households and businesses across the economy.
“The central bank also mandated a 25-basis-point reduction in commercial banks’ lending rates by December 2025, narrowing the Namibian prime-minus-seven repo spread from 3.75% to 3.50%.
This initiative offers major benefits to all borrowers, with annual savings of at least N$314 million,” Shafudah said.
The lending rate reduction followed cumulative repo rate cuts of 50 basis points during 2025, which brought the policy rate to 6.50% as authorities sought to support domestic economic activity while maintaining the Namibia dollar’s peg to the South African rand.
The Monetary Policy Committee kept the repo rate unchanged at 6.50% in February, adopting a cautious stance amid moderating inflation and weaker economic momentum.
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