Namibia's central bank held its repo rate steady at 5.50 percent to "support the domestic economy and mitigate the impact of suppressed prices for key Namibian exports."
The Bank of Namibia, which has held rates steady this year, said it expects the country's economy to slow this year compared with 2012 in line with global growth.
Last year Namibia's Gross Domestic Product expanded by 5.0 percent and the International Monetary Fund has projected 4.4 percent growth for Namibia this year. The central bank has also forecast growth of 4.4 percent.
The bank said indicators suggest that mining output is rising while the agricultural sector "remains embattled with the current drought." Construction remains fairly strong, manufacturing is mixed while wholesale and retail trade is positive but tourism and transport has slowed down.
Namibia's Gross Domestic Product rose by an annual 2.3 percent in the second quarter, up from 1.9 percent in the first quarter.
The country's inflation rate eased to 5.54 percent in September, down from 6.03 percent, and the central bank said it expects inflation to remain stable, around current levels for the rest of the year.
Namibia's foreign reserves fell to N$14.3 billion at the end of September, down from July's 18.1 billion, but the bank said this remains adequate to maintain the fixed currency arrangement and meet international obligations.
"Nevertheless, the situation will receive continuous oversight going forward," the bank said. The Namibian dollar is pegged to South Africa's rand.