Namibia's central bank held its main interest rate on Wednesday, citing heightened global policy uncertainty as it raised its inflation forecasts for this year and next.

The decision to maintain the repo rate at 6.75% followed four consecutive rate cuts.

The Bank of Namibia estimated the Southern African country's economy would grow 3.5% to 4.0% this year, weaker than its projection for 4.0% growth at its last policy meeting in February.

"Downside risks to the outlook have intensified, primarily driven by elevated global policy uncertainty and escalating trade wars," it said in a statement.

US President Donald Trump's tariffs have rocked financial markets and sparked fears of a global recession.

Namibia's central bank said its latest policy decision also aimed to safeguard the peg between the Namibian dollar and the South African rand.

It revised up its average inflation forecast for this year to 4.2% from 4.0% previously, and for 2026 to 4.5% from 4.4%.

"The upward revision is primarily due to a weaker exchange rate and higher administered price assumptions," it said.

Annual consumer inflation rose to 4.2% in March from 3.6% in February.