Angolan National Bank reduces benchmark interest rate to 15.75%

28 January 2019

The benchmark interest rate in Angola, BNA Rate, was revised downwards to 15.75%, down 75 basis points from the previous figure, was the main decision out of the meeting of the Monetary Policy Commission of the National Bank of Angola held Friday in Luanda, the central bank said.

The Commission also decided to reduce the reserve ratio in national currency and foreign currency to 17.0% and 15.0% respectively and maintain the interest rate of the Liquidity Absorption Facility at 0.0%.

The communiqué issued by the Angolan central bank justified the decisions made with the fact that the year-on-year inflation declined in 2018, as well as the evolution of the monetary base, monetary policy operational variable, which contracted 10.71% in the last 12 months.

The National Consumer Price Index (IPCN) registered a monthly variation of 1.41% in December 2018 and a year-on-year change of 18.60%, with the Consumer Price Index in the Province of Luanda registering an annual variation of 18.21%.

The Angolan central bank also said it had sold commercial banks $ 2.2 billion in the last two months of last year to $ 1.5 billion in the same period in 2017.

In accumulated terms of 2018, BNA sold 13.5 billion dollars against 12.2 billion in 2017, which represented an increase of 10.25%.

Gross International Reserves stood at US $ 16.16 billion in December 2018 against US $ 18.23 billion in December 2017, representing a 6.8-month import and import coverage of goods and services. (macauhub)