Drop in inflation leads Angola’s central bank to keep interest rates unchanged

29 July 2019

The Monetary Policy Commission of the National Bank of Angola (BNA) decided to keep the country’s main market benchmark rates unchanged during its meeting last Friday, the central bank said in a statement.

The BNA Rate was kept at 15.0%, and the Permanent Liquidity Absorption Facility at 0%, while the coefficients of Mandatory Reserves in domestic currency were kept at 17% and 15% in foreign currency.

These decisions were supported by the fact that annual inflation continues its downward trend, although the monetary base in national currency, a monetary policy operating variable, expanded by 3.28% in June 2019, the statement said.

In June 2019, the National Consumer Price Index (IPCN) showed a monthly change of 1.08%, slightly below the previous month (1.09%) and a year-on-year change of 16.94%, which was also lower than in the previous period (17.14%).

Gross International Reserves stood at US$16.02 billion in June 2019, compared to US$17.92 billion a year earlier, which covers goods and services imports for a period of 8.78 months. (Macauhub)