Angola's National Bank (BNA) has cut its benchmark interest rate by 125 basis points to 15.75%, Governor Manuel Tiago Dias announced on Wednesday in Malanje, citing a sustained easing of inflationary pressures.
Dias made the announcement at a press conference following the conclusion of the BNA's 130th Monetary Policy Committee (MPC) meeting, held over 13 and 14 May in Malanje. Alongside the benchmark rate cut, the MPC reduced the rate on the permanent liquidity-provision facility from 18% to 16.75% and the rate on the permanent liquidity-absorption facility from 16% to 14.75%.
Governor Dias stressed that the decision to ease policy rates is grounded in the consistent deceleration of inflation recorded in recent months, as well as expectations that this downward trajectory will be maintained in the near term.
On the international front, Dias acknowledged that the global environment remains characterised by significant uncertainty, with tensions in the Middle East continuing to disrupt financial markets, strain global supply chains and sustain upward pressure on worldwide inflation.
He noted that the International Monetary Fund (IMF) has revised down its global growth projection for 2026, lowering the forecast from 3.1% to 3.0%, while simultaneously revising its estimate for global inflation upward to 4.7%.
In energy commodity markets, Dias said the average price of Brent crude oil recorded a sharp decline of 18.72%, falling from US$104 per barrel in May to US$84.56 in July of this year.
He attributed this depreciation in oil prices to ongoing negotiations between the United States and Iran, which have raised expectations of a normalisation of crude oil supply flows through the Strait of Hormuz.
The 130th MPC meeting, convened in Malanje, assessed the recent evolution of both the domestic and international economies, as well as the macroeconomic outlook and risks to price stability.
Source: ANGOP / Original article: www.angop.ao
