Angola: Central Bank Reduces Interest Rate to 15.75 Percent
The National Reserve Bank (BNA) decided to lower the basic interest rate from 16.5 percent to 15.75%. This decision was driven by the decreasing rate of inflation in 2018, as well as the contraction of the Monetary Base of 10.71%.
The decision was made after the meeting of the Monetary Policy Committee (CPM), held on November 25, which decided to maintain unchanged the interest rate of the Liquidity Absorption Permanent Facility at 0% and the coefficients of the Mandatory Reserves in national currency at 17% and 15% in foreign currency.
In December 2018, the National Consumer Price Index (CPI) registered a monthly variation of 1.41% and a year-on-year change of 18.60%. In turn, the Consumer Price Index in the province of Luanda registered an annual variation of 18.21%.
In the months of November and December 2018, a total flow of AKz 638.97 billion was traded on the interbank money market. LUIBOR, at overnight maturity, stood at 16.75%, representing a decrease of 1.02 pp compared to its level at the beginning of the year (17.77%).
The monetary aggregate M2 in national currency, which brings together all the bank deposits in national currency and the bank notes and coins held by the public, registered a positive change, from AKz 4.36 billion to AKz 4.50 billion in November.
December 2018, there was registered an increase of 3.10%. In the last 12 months, this indicator changed negatively by 0.52%. The next ordinary meeting of the Monetary Policy Committee of the National Reserve Bank of Angola will be held on March 28, 2019.
Source: All Africa