Namibia Holds Rates As South Africa’s Policy Shift Limits Room to Cut

Namibia’s central bank kept its key interest rate unchanged at 6.50%, citing the need to protect its currency peg with South Africa as policy conditions tighten across the border.

The decision reflects Namibia’s close monetary link with South Africa, whose rand is pegged one-to-one with the Namibian dollar. South Africa recently adopted a stricter 3% inflation target, prompting Namibian policymakers to place greater weight on domestic price stability to preserve confidence in the peg.

The Bank of…