Angolan Benchmark Interest Rate Steady at 10%

The National Bank of Angola decided on July 29th to leave the benchmark interest rate unchanged at 10 percent for the sixth consecutive meeting, citing price stability. Last month, the Bank cut the required reserve ratio on commercial bank deposits in local currency by 500 bps to 15 percent, to reduce the cost of credit.

In setting up the right monetary policy, the Monetary Committee took into consideration economic situation, inflation rate and fiscal and monetary accounts. 

In June, the inflation rate eased to 0.63 percent mom, down from 0.87 percent in May. Prices of miscellaneous goods and services recorded the highest increase, up by 0.82 percent. The annual inflation rate also slowed to 9.19 percent, from 9.25 percent in the previous month.

At the end of June, the average exchange rate was 96.326 Kwanzas to the US dollar, up from 96.168 at the end of the previous month.

In June, loans to the private sector expanded by 1.20 percent, down from 1.54 percent in May. In the same period, the volume of foreign exchange sold to the market by the bank amounted to USD 1652 million, bringing the volume for the first half of the year to USD 9634 million.

The Monetary Policy Committee also decided to index rediscount operations to the marginal lending rate (11.25 percent).

Angolan Benchmark Interest Rate Steady at 10%

Joana Taborda |
7/29/2013 5:51:39 PM