Angola central bank keeps interest rate steady on easing inflation

Daba Finance/Angola central bank keeps interest rate steady

AFRICAN BUSINESS AND ECONOMYJuly 22, 2024 at 2:59 PM UTC

TLDR

Angola's central bank maintains main interest rate at 19.5% to address inflation slowdown.
Recent data shows annual inflation rate reaching 31%, a slight increase from previous month.
Central bank aims to improve supply of essential goods in efforts to stabilize economy.

Angola's central bank maintained its main interest rate at 19.5%, citing a potential slowdown in inflation and an improvement in the supply of essential goods in the near term.

Previously, the Bank of Angola had raised its main rate by 50 basis points at its last monetary policy meeting in May, following a 100 basis point hike in March, in efforts to curb rising inflation, which has exceeded 30%.

In June, the annual inflation rate increased to 31% from 30.16% in May, though the pace of increase was slower compared to previous months. The central bank's next monetary policy decision is scheduled for September.

Key Takeaways

Inflation in Angola, a net importer and African oil-producing country, has been on the rise since mid-last year. Annual inflation surged to a seven-year high in June, driven by the scaling back of fuel subsidies and a 6% depreciation of the kwanza against the dollar this year, making it the fifth worst-performing currency in Africa among those tracked by Bloomberg. Despite this, monthly inflation slowed to 2.07% in June from 2.49% in May. The central bank maintained its inflation target of 23% for the end of the year, acknowledging that the current rate is "well above" this goal. From August onwards, annual price growth is expected to slow down.

Angola

Inflation

Interest Rate

Economy

Consumer Prices

Kwanza