Drop in inflation leads Angola National Bank to keep base interest rate unchanged

2 August 2012

The National Bank of Angola (BNA) has kept the base interest rate in the country unchanged at 10.25 percent per year, as well as on the permanent liquidity and absorption facilities at 11.75 percent and 1.50 percent per year, respectively, the central bank said citing the decision made at a meeting of the Monetary Policy Commission held Monday.

The decision, the central bank said, was based on analysis of the main macroscopic indicators, specifically the rate of inflation, which in June was 10.11 percent and lower than the 14.58 percent posted in the same month of 2011.

The Monetary Policy Commission also confirmed that the interest rates continued to fall, as has been the case since the beginning of the year, with Luibor (Luanda Interbank Offered Rate) overnight rate falling by 25 basis points in June to 5.39 percent.

Also according to the commission, credit ahs risen 16.63 percent since the beginning of the year and the component in Angolan currency has grown by 28.51 percent in the same period. The average rate of exchange for the kwanza against the US dollar remained stable at 95.36 kwanzas per dollar at the end of June. (macauhub)