Angola: Central Bank stays put in November
November 25, 2022
On 25 November, the Monetary Policy Committee of the National Bank of Angola (BNA) kept the basic interest rate unchanged at 19.50%. Additionally, it also opted not to change the standing liquidity lending facility rate and the standing liquidity absorption facility rate, which remained at 21.00% and 15.00%, respectively.
The Bank’s decision to stop cutting rates was driven by a 10.6% depreciation of the kwanza vis-à-vis the dollar in October. The key factors behind the currency’s weakening were the 50 basis point rate cut delivered at the previous meeting on 26 September and a 16.5% quarter-on-quarter decrease in oil export revenues in the third quarter. That said, inflation continued its downtrend in September and October on the back of a stable supply of essential goods. In this context, the Bank decided to observe the impact of its September rate cut for longer before intervening.
The BNA did not provide explicit forward guidance, but stated that it will continue to guide its policies in order to maintain the current course of deceleration of inflation, in line with its goal to achieve a one-digit inflation rate.
The next monetary policy meeting is scheduled for 20 January.
Author: Adrià Solanes, Junior Economist