On January 21, Angola’s Central Bank decided to keep its main interest rate unchanged at 19.50%, marking the fourth consecutive meeting in which the rate has remained the same.
This decision comes as inflation continues to ease, although it still remains high at over 27% on an annual basis. The Bank of Angola had previously made similar “hold” decisions in July, September, and November 2024, maintaining a cautious approach to monetary policy.
Central bank Governor Manuel Tiago Dias noted that while prices for goods and services remain elevated, there has been a slowdown in both monthly and year-on-year inflation, particularly following the peak seen in June and July of 2024. Inflation in Angola dropped slightly in December, falling to 27.50% from 28.41% in November. Despite this, the bank is continuing to monitor inflationary pressures closely.
Looking ahead, Governor Dias indicated that Angola’s economy grew by 4.4% in 2024, surpassing the initial forecast of 4%. He also projected a more modest economic growth rate of 3.5% for 2025. The central bank’s decision to keep interest rates steady reflects its cautious stance as it navigates ongoing inflation challenges and seeks to stabilise the economy.