Angola: Bank of Angola hikes its Basic Interest Rate
August 28, 2015
At its meeting on 28 August, the Central Bank of Angola decided to increase the Basic Interest Rate by 25 basis points, from 10.25% to 10.50%. The Bank sees the rate hike as appropriate considering the high level of inflation as well as the current state of the economy. The next monetary policy meeting is scheduled for 28 September.
In its brief press release, the Bank commented that inflation has increased due to higher prices for food and non-alcoholic beverages as well as for alcoholic beverages and tobacco. Regarding the stock of credit in the economy, the Monetary Policy Committee said that it had expanded 2.67% in cumulative terms in July since the beginning of the year. The Bank went on to add that in the same month the stock of gross international reserves recorded a 3.17% drop in monthly terms.
Author: Dirina Mançellari, Senior Economist