National Bank of Angola Cuts Rates

The National Bank of Angola decided on August 30th to cut the benchmark interest rate by 25 bps to 9.75 percent, the lowest since the rate was introduced in October of 2011.

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

Government estimates the GDP to rise 7.1 percent in 2013, from 7.4 percent in 2012, boosted by the non-oil sector.

In July, monthly inflation rate eased to 0.52 percent, from 0.63 percent in June. Prices of housing equipment and routine maintenance of the house increased the most (up by 0.85) percent. The annual inflation rate also slowed to 9.04 percent, from 9.14 percent in the previous month.

At the end of July, the average exchange rate was 95.950 Kwanzas to the US dollar, down from 96.326 at the end of June.

In July, loans to the private sector shrank by 0.49 percent and in the same period, the stock of foreign exchange reserves rose 2.7 percent to USD 35657 million.

The Monetary Policy Committee also decided to cut the standing lending facility rate by 25 bps to 11 percent and the standing liquidity absorption facility rate by 25 bps to 0.75 percent.

National Bank of Angola Cuts Rates

Joana Taborda |
9/2/2013 2:10:00 PM