The central bank in its sixth and last monetary policy decision for the year left the key benchmark rate unchanged at 6,75 percent on Wednesday.
Governor Iipumbu Shiimi said the current level is deemed appropriate to continue supporting domestic economic growth, while maintaining the one-to-one link between the Namibian Dollar and South African Rand.
Commenting on the global economy, Shiimi said while the global economy is projected to grow by 3,6 percent in 2017, from the 3,2 percent in 2016, the domestic economy showed more evidence of weakness during the first ten months of 2017.
Additionally, inflation and growth in private sector credit extension (PSCE) continues to slow, while the stock of international reserves rose.
He said the economic activity in key domestic sectors remained weak during the first ten months of 2017, relative to the corresponding period of 2016.
The weak performance was mainly reflected in the construction, wholesale and retail trades as well as transport sectors, he said.
At the same time, other sectors such as mining, agriculture, communication and the manufacturing output improved over the same period.
“The momentum displayed by the latter activities, if sustained, would create better prospects and help with economic recovery going forward,” he said.
“Going forward, economic activities in the advanced economies as a whole are expected to improve with estimated growth of 2,2 percent in 2017, compared to 1,7 percent last year, supported by stronger investment and expansion in manufacturing and service activity.”