Angola’s central bank has cut its key lending rate by 100 basis points to 14.75 per cent, its third consecutive reduction, following a further moderation in inflation.
The Bank of Angola reduced its policy rate from 15.75 per cent on Tuesday, after cutting it by 125 basis points in July and 50 basis points in May.
Inflation in the southern African oil-producing country eased to 8.78 per cent year-on-year in August from 9.33 per cent in July, marking the first single-digit reading since 2015.
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The central bank retained its year-end inflation forecast at 8.6 per cent but raised its 2026 growth forecast sharply to 6.15 per cent from 3.6 per cent in July.
It attributed the stronger growth outlook to improved performance in both the oil and non-oil sectors.
Angola’s economy has also benefited from elevated global energy prices linked to the conflict involving Iran.
The International Monetary Fund has urged policymakers to use oil revenue windfalls to reduce debt and build fiscal buffers.
Finance Minister Vera Daves de Sousa said the government was likely to raise its 2027 oil price assumption from the 61 dollars per barrel used in the 2026 budget, while retaining a conservative approach to forecasting.
Liandra da Silva, an economist at Nedbank, said Angola’s position as an oil exporter provided some protection from external shocks, although persistent increases in shipping costs and imported input prices could still generate inflationary pressures.
Reuters
