Angola: Bank of Angola increases its Basic policy rate
June 29, 2015
At its meeting on 29 June, the Central Bank of Angola decided to increase the basic policy rate by 50 basis points, from 9.25% to 9.75%. 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 27 July.
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 education. Regarding the stock of credit in the economy, the Monetary Policy Committee said that in May it had expanded 1.83% in cumulative terms since the beginning of the year. The Bank went on and added that in the same month the average exchange reference rate had depreciated 0.91% from the previous month and now stands at 110.84 kwanzas per USD.
Author: Dirina Mançellari, Senior Economist