Angola: Bank of Angola keeps Basic Interest Rate on hold at record-high
July 29, 2016
At its 29 July monetary policy meeting, the National Bank of Angola (Banco Nacional de Angola, BNA) decided to keep the Basic Interest Rate unchanged at a record-high of 16.00%. The Central Bank has raised the Basic Interest Rate three times this year to combat soaring inflation; the most recent hike was at the monthly meeting in June.
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 world economy. The Central Bank stated that latest data from June show that the monthly variation in consumer prices is showing signs of abating thanks to a policy mix that has reduced the monetary base. Despite this encouraging development, inflation remained above 30.0% in June and the BNA expressed deep concerns over the drop in export earnings and the supply of foreign currency in the economy.
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 29 August.