The National Bank of Angola has held its key interest rate at 19.5%, while reducing reserve requirements and liquidity absorption rates. These actions are taken to ensure economic growth continues above 3%, with a GDP growth forecast of 4.4% for 2024 and an expected inflation reduction to 17.5% in 2025.
The National Bank of Angola maintained its key interest rate at 19.5% during the March 2025 meeting, holding borrowing costs steady for ten consecutive months, the highest level since December 2022. In a move to foster financial liquidity, the central bank also reduced the liquidity absorption rate and the reserve requirement ratio for commercial banks by 100 basis points each, bringing them to 17.5% and 20%, respectively.
These adjustments are part of the bank’s strategy to enhance liquidity within Angola’s financial system, with the objective of sustaining economic growth above the target of 3%. Projections indicate that the country’s GDP for 2024 is anticipated to grow at 4.4%, surpassing the predicted 3.61% growth rate for the oil sector. Furthermore, inflation is forecasted to decrease to 17.5% in 2025, following an expected rate of 27.5% by the end of 2024.
In summary, the National Bank of Angola opted to retain its key interest rate while implementing measures to enhance liquidity in the financial system. These changes aim to support economic growth and manage inflation, demonstrating the central bank’s commitment to stable financial conditions in Angola.
Original Source: www.tradingview.com
