Angola: Bank of Angola raises Basic Interest Rate for the third time since December
March 28, 2016
At its 28 March monetary policy meeting, the second of the year, the National Bank of Angola (BNA, Banco Nacional de Angola) decided to raise the Basic Interest Rate from 12.00% to 14.00%. The BNA has raised the Basic Interest Rate three times this year.
In its brief press release, the BNA stated that it grounded its decision on the evolution of prices, the exchange rate, other macroeconomic indicators as well as the world economy for the month of February. The Bank noted that inflation climbed to 20.3% in February. Moreover, the Bank stated that the Angolan kwanza, on average, depreciated 2.14% against the previous month, standing at 158.9 AOA per USD in February. Regarding the stock of credit in the economy, the Monetary Policy Committee said that in February it expanded 0.48% in cumulative terms since the beginning of the year.
Against this backdrop, the Monetary Policy Committee decided to hike the Basic Interest Rate to 14.00%. The next monetary policy meeting is scheduled for 28 April.