National Bank of Angola keeps benchmark interest rates unchanged

24 September 2018

The National Bank of Angola decided to keep the BNA Rate at 16.5%, as well as the interest rate of the marginal liquidity absorption facility at 0.0%, during the Monetary Policy Committee meeting held on Friday in Luanda.

The Committee also decided to keep the reserve ratio in national currency at 17% and foreign currency at 15%, the central bank said in a statement.

The statement added that these decisions are based on the downward trend of the national annual inflation rate for the tenth consecutive month, as well as the evolution of the monetary base, operational aggregate of monetary policy, which in August contracted 2.45% year-on-year.

The M2 monetary aggregate in national currency, which brings together all the bank deposits in national currency and the notes and coins held by the public, had a negative change of 83.75 billion kwanzas in August 2018, having passed from 4.42 trillion kwanzas in July 2018 to 4.34 trillion kwanzas in August 2018, a reduction of 1.89%.

In August, the National Bank of Angola sold US$1.42 billion to commercial banks, with a cumulative sale of US$9.48 billion this year, 6.50% lower than was sold in the primary market in the same period of 2017.

Gross International Reserves in August 2018 stood at US$17.18 billion, compared with US$18.54 billion in July 2018 and US$18.06 billion in December 2017. (macauhub)