Angola: Bank of Angola holds Basic Interest Rate steady at record high in November
December 2, 2016
At its 28 November 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 fight soaring inflation, with the latest hike in June. Inflation has been skyrocketing due to 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. According to preliminary data, credit growth was 0.4% in October in the private sector, whereas credit to central government grew 0.8% in that month. The Central Bank stated that data from October showed that the monthly variation in consumer prices eased from 2.14% in September to 1.79% in October, though the annual inflation in consumer prices continues to exceed 30.0%.
The next monetary policy meeting is scheduled for 22 December.
Author: Andrea Vetrugno, Economist