Angola: Bank of Angola increases its Basic Interest Rate
July 27, 2015
At its meeting on 27 July, the Central Bank of Angola decided to increase the Basic Interest Rate by 50 basis points, from 9.75% to 10.25%. The Bank sees the rate hike as appropriate considering the inflation outlook as well as the current state of the economy. The next monetary policy meeting is scheduled for 28 August.
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 housing and electricity. Regarding the stock of credit in the economy, the Monetary Policy Committee said that it had expanded 5.56% in cumulative terms in June since the beginning of the year. The Bank went on to add that in the same month the average exchange rate had depreciated 10.04% from the previous month.
Author: Dirina Mançellari, Senior Economist