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Angola Holds Key Interest Rate at 15.5%
The National Bank of Angola held its benchmark interest rate at 15.5 percent during its November meeting, with policymakers voicing concerns about the ongoing coronavirus-induced recession and rising inflationary pressure. Angola's consumer prices rose 24.34 percent in October, faster than 23.82 percent in the previous month, as the kwanza continued to depreciate due to the impact of Covid-19 and subdued oil prices.
Published on 2020-11-27

Angola Leaves Monetary Policy Unchanged
The National Bank of Angola held its benchmark interest rate at 15.50 percent during its September meeting, saying that an environment of uncertainty and downside risks prevails despite some optimism about the resumption of economic activity. Policymakers also noted that annual inflation rose to 23.41 percent in August, its highest level since 2017.
Published on 2020-09-28

Angola Holds Key Interest Rate at 15.5%
The National Bank of Angola kept its benchmark interest rate unchanged at 15.5% during its July 2020 meeting, after the annual inflation rate soared to 22.62%, its highest since January of 2018 due to higher food prices. At the same time, policymakers decided to introduce a custody fee on the excess liquidity of commercial banks with the BNA, whose characteristics will be subject to specific regulations. This aims to encourage an increase in the level of intermediation of financial resources between commercial banks and other economic agents, with the underlying objective of stimulating economic activity.
Published on 2020-07-28

Angola Leaves Key Interest Rate Steady at 15.5%
The National Bank of Angola kept its benchmark interest rate unchanged at 15.5% during its May 2020 meeting, amid the continued depreciation of the kwanza and galloping inflation. Policymakers said the current policy stance remains appropriate to support its inflation commitment given the worsening economic backdrop due to the Covid-19 pandemic. The Committee also added that the domestic economy could be affected by the performance of the oil industry and its impact on external and fiscal accounts. The liquidity absorption facility rate was left on hold at 0% and the reserve ratios in both national and foreign currency were also kept unchanged at 22% and 15%, respectively.
Published on 2020-05-07

Angola Holds Key Interest Rate at 15.5%
The National Bank of Angola left its benchmark interest rate unchanged at 15.50 percent during its March 2020 meeting, saying that inflation levels are still high, being necessary to continue the process of price stabilization in the economy. In February, the annual inflation rate climbed further to a near 1-1/2 year high of 18.74 percent. Policymakers also noted the recent fall in oil prices and its impact on the level of international reserves, revealing a set of measures to protect them and ensure the external solvency of the economy. The Committee also assessed the possible effects of the COVID-19 pandemic on the national economy, with particular attention to external accounts and its implications for the conduct of monetary and exchange rate policy, pointing out the option of using the mandatory reserves of commercial banks to grant credit to the productive sector.
Published on 2020-03-30

Angola Leaves Monetary Policy Unchanged
The National Bank of Angola held its benchmark interest rate at 15.50 percent during its January meeting, saying the current monetary policy stance remains appropriate to support the Kwanza. Policymakers also noted that annual inflation fell to 16.9 percent in December, its lowest level since 2015; while net foreign reserves increased 11.19 percent year-on-year, the biggest annual gain since 2013.
Published on 2020-01-27

Angola Holds Interest Rate at 15.5%
The National Bank of Angola left its benchmark interest rate unchanged at 15.50 percent during its November meeting, saying that the disinflation trend in the economy has continued, despite the implementation of the Value Added Tax (VAT) and the liberalization of the exchange rate in October 2019. Policymakers noted that Inflation rate remained unchanged at 16.08 percent in October 2019, the lowest level since January 2016, though the monetary base in national currency increased 6.81 percent, after a contraction of 11.68 percent in September. The reserve ratio in national and foreign currency were also left unchanged at 22 percent and 15 percent, respectively.
Published on 2019-11-29

Angola Leaves Interest Rate Steady at 15.5%
The National Bank of Angola left its benchmark interest rate unchanged at 15.50 percent during its October extraordinary meeting, saying that in order to consolidate the new floating exchange rate regime introduced in 2018, it was decided to remove the 2 percent margin on the reference exchange rate used by commercial banks in trading foreign currency in the interbank market and their customers. Among other measures, the bank also opted to maintain the 0 percent interest rate for the overnight liquidity-absorbing facility and adjust the reserve requirement ratio for national currency from 17 percent to 22 percent, in a bid to reduce the excess of Kwanzas in the market. Regarding the impact of the exchange rate liberalization on prices, the bank hopes it will be softened by the adoption of a measure allowing importers who use letters of credit to not have to wait 90 days to make payments abroad.
Published on 2019-10-23

Angola Leaves Interest Rate Steady at 15.5%
The National Bank of Angola left its benchmark interest rate unchanged at 15.50 percent during its October meeting, saying the annual inflation reversed its downward trend while the monetary base in national currency contracted. Inflation rate increased 17.50 percent in August from 17.24 percent in July, the first rise in seven months.
Published on 2019-10-02

Angola Holds Key Interest Rate at 15.5%
The National Bank of Angola held its benchmark interest rate at 15.50 percent during its July meeting, saying annual inflation continued its downward trend, although the monetary base in national currency increased by 3.28 percent in June. Inflation rate dropped to 16.94 percent, the lowest level since January 2016, from 17.14 percent in May.
Published on 2019-07-26

Angola Cuts Key Policy Rate to 15.5%
The National Bank of Angola lowered its benchmark lending rate by 25bps to 15.50 percent during its May meeting, citing a slowdown in inflation. Consumer price inflation fell to 17.56 percent in April, the lowest level since January 2016.
Published on 2019-05-24

Angola Leaves Interest Rate Steady at 15.75%
The National Bank of Angola held its benchmark interest rate unchanged at 15.75 percent at its April 1st 2019 meeting as the inflation rate should continue to decline and the economic activity is expected to recover. Annual National inflation rate dropped to 3 year low of 17.96 percent in February while month over month figure was at 1.04 percent, the lowest level since November 2017. The liquidity absorption facility rate was left on hold at 0 percent and the reserve ratios in both national and foreign currency were also kept at 17 percent and 15 percent, respectively.
Published on 2019-04-01

Angola Cuts Key Interest Rate to 15.75%
The National Bank of Angola cut its benchmark interest rate by 75 points to 15.75 percent on its January 25th 2019 meeting, bringing it to the lowest rate since mid-2016. Policymakers mentioned a slowdown in inflation during 2018 and a 10.7 percent decline in the monetary base in the last twelve months. National inflation rate rose to 18.60 percent in December from 18.36 percent in November, staying above that registered in Luanda (18.21 percent). The liquidity absorption facility rate was left on hold at 0 percent and the reserve ratios in both national and foreign currency were also left unchanged at 17 percent and 15 percent, respectively.
Published on 2019-01-28

Angola Leaves Monetary Policy Unchanged
The National Bank of Angola left its benchmark interest rate steady at 16.5 percent on its November 30th 2018 meeting. Policymakers said that the decision supports the disinflation path and the evolution of the monetary base and added that they will continue to monitor the level of liquidity of the system. The annual inflation rate fell to 18.04 percent in October from 19.21 percent in September. The reserve ratio in national and foreign currency were also left unchanged at 17 percent and 15 percent, respectively.
Published on 2018-11-30

Angola Leaves Monetary Policy Unchanged
The National Bank of Angola kept its benchmark interest rate steady at 16.5 percent on its September 21st 2018 meeting, after trimming it by 150 bps in the previous meeting. The reserve ratio in national currency and the absorption liquidity rate were also left unchanged at 17 percent and 0 percent, respectively. Policymakers said that the decision was supported by the annual inflation rate, which fell for the tenth consecutive month to 18.56 percent in August from 19.01 percent in July and by the evolution of the monetary base.
Published on 2018-09-21

Angola Cuts Interest Rate to 16.5%
The National Bank of Angola cut its benchmark interest rate by 150 bps to 16.5 percent on its July 17th 2018 meeting, after unifying the marginal lending facility rate and the basic interest rate in the previous meeting. Policymakers also trimmed the reserve ratio in national currency by 200 bps to 17 percent while left the absorption liquidity rate unchanged at 0 percent. The Committee noted that the annual inflation fell for the eighth consecutive month to 19.56 percent in June from 19.84 percent in May, and it is projected to decrease more than the forecast. Additionally, policymakers said that a trend is expected for the reduction of the credit interest rates in the economy.
Published on 2018-07-17

Angola Changes Benchmark Interest Rate
The National Bank of Angola set its new monetary policy rate at 18 percent on May 24th 2018 meeting. The Committee decided to unify the marginal lending facility rate (previously at 20 percent) and the basic interest rate (previously at 18 percent), creating the BNA Rate as the new benchmark interest rate. Policymakers also left the absorption liquidity rate unchanged at 0 percent while the reserve ratio in national currency was cut by 200 bps to 19 percent. The Committee said the decision aimed to adjust and improve the effectiveness of the monetary policy instruments in the macroeconomic stabilization process and the soundness of the financial system.
Published on 2018-05-24

Angola Keeps Interest Rate Unchanged at 18%
The National Bank of Angola left its monetary policy rate unchanged at 18 percent on April 30th 2018 meeting. The Committee analyzed the evolution of the inflation behavior the factors that determine its behavior in the short term and other indicators related to the domestic economy. The annual inflation rate dropped to 20.90 percent in March from 21.47 in February. Policymakers also held the overnight liquidity rate at 20 percent, the absorption liquidity rate at 0 percent and the reserve ratio in national currency at 21 percent and in foreign currency at 15 percent.
Published on 2018-04-30

Angola Keeps Monetary Policy on Hold
The National Bank of Angola held its monetary policy rate steady at 18 percent on March 29th 2018, saying it analyzed the inflation behavior and the factors that determine it in the short term. The annual inflation rate declined to 21.47 percent in February from 22.72 percent in January. Policymakers also left the overnight liquidity rate at 20 percent, the absorption liquidity rate at 0 percent and the reserve ratio in national currency at 21 percent and in foreign currency at 15 percent.
Published on 2018-03-29

Angola Interest Rate Kept Steady at 18%
The National Bank of Angola held its monetary policy rate steady at 18 percent in February of 2018, saying the current policy stance remains appropriate given the evolution of the main macroeconomic indicators. The annual inflation declined to 22.72 percent in January from 23.67 percent in December. The Committee mentioned that in a prior meeting held in January a floating exchange rate system with bands was adopted instead of the previous fixed exchange rate regime mainly for sustainability of external accounts purposes. The average exchange rate of the Kwanza against the US Dollar increased to 207.21 from an average of 165.92 at the end of 2017. Policymakers also left the overnight liquidity rate at 20 percent, the absorption liquidity rate at 0 percent and the reserve ratio in national currency at 21 percent.
Published on 2018-02-28