Angola: Central bank cuts key rate to 14.75%, inflation below 9%

On Tuesday, September 15, the National Bank of Angola (BNA) lowered its key interest rate from 15.75% to 14.75%, continuing its monetary easing cycle as inflation fell to its lowest level in over a decade.

Annual inflation slowed to 8.78% in August, down from 9.33% in July. Angola had not recorded single-digit inflation since 2015.

The Monetary Policy Committee also reduced the rates on its permanent facilities by one percentage point and lowered the reserve requirement ratio in local currency from 17.5% to 16.5%. The central bank attributed these decisions to ongoing disinflation and its short- to medium-term outlook.

This reduction marks the third consecutive cut to the key rate. In July, the BNA had already decreased it from 17% to 15.75%, following an initial easing in May.

At the same time, the central bank raised its GDP growth forecast for 2026 to 6.15%, up from 3.6% in July. It anticipates a 7.16% expansion in the non-oil sector, particularly supported by agriculture, fishing, manufacturing, trade, and construction.

The BNA maintains an inflation forecast of 8.6% by the end of the year. The International Monetary Fund has advised authorities to use the additional revenue from high oil prices to reduce debt and strengthen budget margins.