Angola: Bank of Angola leaves Basic Interest Rate unchanged at record high in December
December 29, 2016
At its 22 December monetary policy meeting, the National Bank of Angola (Banco Nacional de Angola, BNA) decided to keep the Basic Interest Rate on hold again at a record high of 16.00%. The Central Bank raised the Basic Interest Rate three times in 2016 in an effort to fight inflation, which remains rampant. Prices have been skyrocketing due to successive reductions in fuel subsidies and the weakness of the Angolan kwanza against the U.S. dollar, which has increased 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. The Central Bank highlighted that data from November showed that the monthly variation in consumer prices had picked up to 2.1%, driven by an exceptional increase in telecommunications prices, while inflation in December stood at 41.2%.
The next monetary policy meeting is scheduled for 30 January.
Author: Oliver Reynolds, Economist