Angola Monetary Policy February 2018

Angola

Angola: Central Bank leaves main interest rate unchanged in February

February 28, 2018

At its monthly meeting held on 28 February, the National Bank of Angola (Banco Nacional de Angola, BNA) left the main interest rate unchanged at 18.00%.

The Bank’s stance was expected, given elevated inflation in the country and the currency devaluation on 9 January. While inflation moderated from 26.3% in the previous month to 25.1% in January, consumer prices in January increased from 1.13% month-on-month to 1.39%. This suggests that price pressures remain elevated and it is too early to slash rates. On the other hand, raising rates to stem inflation would negatively impact economic activity and have a significant impact on the country’s non-oil sector, weighing on economic growth and Angola’s economic recovery.

The press release was devoid of any forward guidance, but analysts expect monetary conditions to remain tight in the foreseeable future. Any future rate decision will depend on incoming data from the real and monetary sectors.

The next monetary policy meeting is scheduled for 30 March.

FocusEconomics Consensus Forecast panelists expect the BNA Basic Reference Rate to end 2018 at 18.00% and 2019 at 16.25%.


Author: Jean-Philippe Pourcelot, Economist

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Angola Monetary Policy Chart


Angola Monetary Policy January 2018

Note: BNA Basic Reference Rate (%, eop)
Source: National Bank of Angola


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