Angola: Bank of Angola raises Basic Interest Rate in its first meeting of the year
January 30, 2016
At its 30 January policy meeting, the first of the year on, the Central Bank of Angola decided to increase the Basic Interest Rate from 11.00% to 12.00%. This was the second consecutive meeting in which the Central Bank raised the Basic Interest Rate as low commodity prices have taken a toll on the Angolan economy. The decision was rooted in the necessity to combat soaring inflation and to support the weakening Angolan kwanza amid declining oil revenues. The next monetary policy meeting is scheduled for 29 February.
Regarding the stock of credit in the economy, the Monetary Policy Committee said that in December it had expanded by 17.50% in cumulative terms since the beginning of the year. The Bank went on to add that the primary exchange rate remained unchanged in January and stands at 135.3 AOA per USD for the third consecutive month.