Bank of Angola reduces permanent liquidity facility rate to 11.5 pct

24 September 2012

The National Bank of Angola has reduced the interest rate on its permanent loan liquidity facility by 25 basis points to 11.50 percent and kept the permanent absorption facility unchanged at 1.50 percent, the central bank said in a statement.

At the meeting on 20 September, the Monetary Policy Commission once again recommended using Angola’s currency for transactions within the internal market and that economic agents take Luibor (Luanda Interbank Offered Rate) as the benchmark for loan negotiation.

In its statement the central bank said that credit had increased by 5.24 percent in August and by 17.09 percent since the beginning of the year, with prices growing 0.60 percent in August and the rate of inflation fell for the first time to a single figure at 9.87 percent.

The statement also said that “interest rates remained stable throughout the month of August and the Luibor Overnight rate stood at 5.21 percent, the Luibor 1 month rate at 7.30 percent and the 12 month rate at 10.55 percent. (macauhub)