Angola Monetary Policy January 2019

Angola: Central Bank cuts the key policy rate in January

At its meeting on 25 January, the Monetary Policy Committee (MPC) of the National Bank of Angola (Banco Nacional de Angola, BNA) lowered the key policy rate by 75 basis points to 15.75%. Meanwhile, the BNA left both the interest rate for the permanent liquidity-absorption facility and the coefficients of mandatory reserves unchanged. The decision came on the heels of two consecutive holds in the second half of last year and marks the beginning of what our panelists see as a gradual monetary easing cycle this year.

The Bank’s decision was driven by generally easing inflationary pressures throughout 2018. Despite picking up slightly at the end of the year (December: 18.2%; November: 17.8%), inflation in the province of Luanda was significantly lower in 2018 compared to the previous year, prompting the Bank to soften its policy stance. Meanwhile, the Bank’s move also reflected a shrinking monetary base as the money supply in national currency contracted 10.7% in annual terms in January.

Looking ahead, the key policy rate is expected to fall further this year, although only modestly against the backdrop of still-high inflation and the Central Bank’s commitment to maintain prudent monetary policy, reinforced by the country’s financing deal with the IMF.

The next Monetary Policy Committee meeting is scheduled for 28 March 2019.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest