The Bank of Namibia on Thursday increased its bank rate by 50 basis points to 9.50% annum.
The increase is effective 8 June, Governor Tom Alweendo said.

While tighter monetary conditions could moderate economic growth, Alweendo said the bank believed that contained inflation was a more serious consideration at this stage than a situation of high economic growth with high inflation.
He said since the last Monetary Policy meeting in April, the outlook on inflation had deteriorated further. Despite tighter domestic monetary conditions, inflation picked up to 6.9% in April from 6.3% in March 2007, the highest since July 2003 when it reached 6.6%t.
Alweendo however said the current economic performance was robust enough to contain tighter monetary conditions without significant negative impacts.
In South Africa, the central bank also raised its key repo rate by 50 basis points to 9.5% on Thursday.
Governor Tito Mboweni said the inflation outlook in South Africa had deteriorated and warned the bank would continue to monitor inflation and would act accordingly.