National Bank of Angola Cuts Rate by 50 bps

The National Bank of Angola decided on November 25th to cut the benchmark interest rate for the second time this year by 50 bps to 9.25 percent, citing falling inflation. The Board kept its recommendation to take the LUIBOR as the benchmark interest rate on bank loans.

In October, the inflation rate slowed to 0.41 percent and the annual rate edged down to 8.38 percent. The central bank noted that the inflation rate has been on a downward trend in the last few years and expects this trend to continue. 

Last month, interest rates on loans in national currency decreased across all maturities, from 14.09 percent to an average of 13.79 percent. The LUIBOR Overnight decreased to 5.38 percent from 5.52 percent, and LUIBOR 3 months was recorded at 8.23 percent and LUIBOR 12 months at 9.87 percent.

At the end of October, the average exchange rate was 97.27 Kwanzas to the US dollar, slightly up from 97.39 at the end of September.

The Monetary Policy Committee also decided to cut the standing lending facility rate from 11 percent to 10.25 percent and maintain the standing liquidity absorption facility rate at 0.75 percent.

National Bank of Angola Cuts Rate by 50 bps

Joana Taborda |
11/25/2013 4:13:31 PM