The National Bank of Angola (BNA), through its Monetary Policy Committee (CPM), has decided to maintain key reference interest rates, signaling continued confidence in market stability. The announcement was made by Governor Manuel Tiago Dias on July 19 in Soyo, Zaire Province, following a comprehensive review of national and international market trends.
The BNA rate remains at 19.5%, with the Standing Lending Facility rate at 20.5% and the Standing Absorption Facility rate at 17.5%. The decision, according to the governor, reflects ongoing global uncertainties and domestic adjustments in administered prices such as electricity and water.
In a notable move, the BNA lowered the mandatory reserve requirement in national currency from 19% to 18%. Dias explained that this aims to reduce interbank interest rates and boost credit to the real economy.
Angola’s monthly inflation rate in June 2025 stood at 1.21%, slightly above May’s 1.17%, mainly due to administrative price adjustments. However, food and non-alcoholic beverages, historically major contributors to inflation, accounted for just 59.18% of the total, signaling progress in inflation control.
Year-on-year inflation continued its downward trend, falling to 19.73% in June from 20.74% in May, and significantly down from 31% a year earlier. This decline is attributed to increased domestic production, adequate monetary conditions, and exchange rate stability—especially in Luanda, where food inflation has notably slowed.
Monetary indicators also showed contraction. The national currency monetary base shrank 2.06% in June, contributing to a 10.87% cumulative drop. However, M2 money supply in national currency expanded 1.80% in June, with a 10.78% year-on-year increase.
Credit to the economy reached 6.46 trillion kwanzas, up 3.18% from May and 31.24% year-on-year in national currency. Meanwhile, Angola’s goods account surplus rose by 36.33% in June to $1.25 billion. However, the cumulative goods surplus for the first half of 2025 totaled $7.29 billion, a drop from $11.90 billion in the same period of 2024.
The BNA’s cautious but proactive approach reflects a balancing act between stability and gradual economic stimulation.
Source: Fama & Poder/Jornal de Angola
Este post já foi lido 1040 vezes.
