Angola reduces benchmark interest rate to 19.5%

The central bank of Angola decided on Monday to reduce the reference interest rate from 20% to 19.5%, arguing with the slowdown in inflation and the appreciation of the national currency, the kwanza.
“Considering the consistency of the slowdown in the evolution of prices in the national economy, particularly since the beginning of the current year, as a result of the continuous and strict control of liquidity, the appreciation of the kwanza in relation to the main currencies used in transactions with abroad and the increase in the supply of essential goods for widespread consumption, the National Bank of Angola [BNA] believes that the conditions are met for the reduction of the key interest rate,” announced the financial regulator at the end of the meeting of the monetary policy committee.
At the meeting, bankers decided “to reduce the Basic Interest Rate from 20% to 19.5%; reduce the interest rate on the Permanent Liquidity Transfer Facility from 23% to 21%; and keep unchanged the interest rate on the Permanent Absorption Facility at 15%.”
In addition to the economic environment in Angola, the decision also took into account “the external context and inherent risks, given the exposure of the Angolan economy to the oil sector and the weight of imported foodstuffs in the supply basket to the domestic market,” the statement also said.