Angolan central bank raises interest rates

23 December 2015

The National Bank of Angola (BNA) raised benchmark interest rates, namely the BNA rate, which rose from 10.5 percent to 11 percent, according to the most recent decisions of the bank’s Monetary Policy Committee.

The Angolan central bank said in a statement the commission decided to increase the interest rate on the marginal lending facility by half a percentage point to 13 percent and reduced the interest rate on the liquidity absorption facility from 1.75 percent to 0 percent.

The Monetary Policy Committee of the National Bank of Angola also decided to set up a permanent liquidity facility with a seven-day maturity, having set the interest rate at 1.75 percent.

The committee said in a statement it had noted the worsening of monetary conditions in the Angolan economy, after analysing the evolution of inflation and the exchange rate, as well as fiscal, monetary and external account indicators.

In November the Luibor (Luanda Interbank Offered Rate) stood at 11.53 percent “overnight” and at 11.56 percent and 12.00 percent for maturities of three and 12 months, respectively. The average benchmark exchange rate stabilised against October at 135.312 kwanzas per dollar. (macauhub/AO)