National Bank of Angola raises basic interest rate to 16 pct

5 July 2016

A decision of the latest meeting of the Monetary Policy Committee of the National Bank of Angola has raised the basic interest rate for the Angolan market, the BNA, by two percentage points to 16 percent.

The Committee also decided to increase the interest rate on the marginal lending facility from 16 percent to 20 percent and the interest rate on the permanent absorption facility from 2.25 percent to 7.25 percent.

The Monetary Policy Committee of the Angolan central bank said in the statement that the increase in the key interest rates of the National Bank of Angola is intended to encourage savings, and called on financial system operators to find innovative and attractive solutions to promote savings by economic agents in general and by families in particular.

Committee members also paid special attention to recent price trends in the Angolan economy noting with concern that monthly inflation (measured by the Consumer Price Index in the province of Luanda) was persistently around 3 percent.

The inflation rate stood at 29.23 percent in May, up 2.81 percentage points on the figure recorded last April. (macauhub/AO)