The Monetary Policy Committee (CPM) of the National Bank of Angola decided to reduce the interest rate on the marginal lending facility by two percentage points, from 20% to 18% and merge it with the BNA Rate, the benchmark market rate, the central bank said in a statement released on Thursday in Luanda.
The CPM’s decision, which will now meet on a bi-monthly rather than monthly basis, “aims to clearly reflect the actual cost of lending to commercial banks by the central bank.”
The CPM also decided to reduce the reserve ratio in national currency from 21% to 19% and to maintain the reserve ratio in foreign currency as well as the interest rate on the marginal liquidity absorption facility at 15%.
“These decisions were based on adjusting and improving the effectiveness of monetary policy instruments, contributing to the continuity of the process of macroeconomic stabilisation and soundness of the financial system,” the statement said.
The statement from the Angolan central bank also reported that in April it sold 596.33 million euros to commercial banks, and the accumulated sale, in the current year, was 2.842 billion euros.
At the end of April 2018, International Gross Reserves stood at US$17.55 billion, compared to US$17.70 billion at the end of March, which represented 7.31 months of coverage of imports of goods and services. (macauhub)