Angola: Bank of Angola held Basic Interest Rate steady at record high in September
September 28, 2016
At its 28 September monetary policy meeting, the National Bank of Angola (Banco Nacional de Angola, BNA) decided to keep the Basic Interest Rate on hold at a record high of 16.00%. The Central Bank has raised the Basic Interest Rate three times since the beginning of the year in an effort to combat spiraling inflation; the previous hike was at the monthly meeting in June. Inflation has been soaring due to the successive reductions in fuel subsidies and the weakness of the Angolan kwanza against the U.S. dollar, which is dramatically increasing the cost of imports to the African country.
In its brief press release, the BNA stated that its decision to leave the rate unchanged was based on the latest evolution of prices, the exchange rate and other macroeconomic indicators, as well as the global economy. The Central Bank stated that data from August showed that the monthly variation in consumer prices eased from 4.04% in July to 3.31% in August, though the annual inflation in consumer prices continues to exceed 30.0%. Latest developments in the exchange market show that the Angolan kwanza remained stable in August.
Against this backdrop, the Monetary Policy Committee decided to maintain the Basic Interest Rate unchanged at 16.00%. The next monetary policy meeting is scheduled for 31 October.