Angola Monetary Policy May 2024

Angola: National Bank of Angola continues tightening cycle in May

At its meeting on 16–17 May, the Monetary Policy Committee of the National Bank of Angola (BNA) increased the key interest rate by 50 basis points to 19.50%. The move marked the second consecutive hike—for the first time in almost a decade—but surprised markets on the downside. Meanwhile, the Bank raised the standing liquidity facility rate to 20.50% and the required reserve ratio to 21.00%, while maintaining the standing liquidity facility rate at 18.50%.

The Central Bank’s decision was primarily driven by the persistence of inflationary pressures within the economy and aimed to control circulating liquidity. Inflation surged to 28.2% in April, the highest rate since June 2017, mainly driven by food and non-alcoholic beverages. Sustained weakness in the kwanza and last year’s petrol subsidy removal further fueled price pressures. The BNA also highlighted the impact of goods shortages, as an increase in national production has failed to compensate for reduced imports.

In its communiqué, the BNA did not include explicit forward guidance. That said, a majority of our panelists pencil in additional hikes this year; our Consensus is for the key interest rate to be raised by 50 basis points by end-2024.

The next monetary policy meeting is scheduled for 18–19 July 2024.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest