National Bank of Angola keeps key interest rate at 16%

6 October 2016

The National Bank of Angola (BNA) decided to keep the country’s main benchmark interest rate, known as the BNA rate, unchanged at 16%, according to the latest decisions of the Monetary Policy Committee.

Announcing the decisions from the Committee meeting on 28 September, the BNA said on Wednesday the marginal lending facility and liquidity absorption facility remained at 20.0% and 7.25%, respectively.

The Monetary Policy Committee analysed the key indicators of the economy and found an inflation slowdown in August, due on the one hand, to an increase in the supply of goods and services, especially food and, on the other, restrained demand.

Price increases in August, as measured by the Consumer Price Index in the province of Luanda, totalled 3.30% against 4.04% in July, but annual inflation remained very high at 38.18%.

In August the average exchange rate of the kwanza against the dollar remained relatively stable at 165.888 kwanzas, the BNA also said. (macauhub)