Angolan central bank may reduce benchmark interest rate again in 2019

10 April 2019

The National Bank of Angola may once again this year lower the country’s benchmark interest rate, BNA Rate, after reducing it in January, according to an analysis by the BAI Europe Bank on the performance of the economy in the first quarter.

“If inflation continues to slow down, the monetary base is contained and economic activity (non-oil sectors) continues to show insufficient dynamism, it cannot be ruled out that, prudence notwithstanding, in 2019 there may be a downward adjustment of the BNA rate,” the statement said.

The document noted that on 25 January the National Bank of Angola reduced the BNA rate from 16.5% to 15.75%, considering the downward trend in inflation and the decline in the monetary base.

At the same time, the committee decided to keep the reserve ratio, in local currency and in foreign currency, unchanged at 17% and 15%, respectively.

At its last meeting on 29 March, the Monetary Policy Committee decided to keep the BNA Rate at 15.75%, as well as the interest rate of the Permanent Liquidity Absorption Facility at 0.0% and the coefficients of the Required Reserves in national currency at 17% and 15% in foreign currency.

According to the committee this decision was based on the analysis of the factors that determine inflation, which indicates that it should keep the trend observed in recent months, as well as the prospect of positive evolution of the real sector of the economy. (Macauhub)