- Decision
- Maintain
- Rate change
- 0 bps
- BNA rate
- 19.5%
The Monetary Policy Committee of the National Bank of Angola on 18 March 2025 left the benchmark BNA rate at 19.5 % and the standing liquidity‐lending facility at 20.5 %, while trimming the standing liquidity‐absorption facility by 100 bp to 17.5 % to foster greater activity in the interbank market amid easing price pressures. The key rate has been steady at 19.5 % since at least January 2025. The new corridor narrows the spread between the lending and absorption windows, complementing January’s cut in the reserve-requirement ratio. Annual consumer inflation slowed for a seventh consecutive month to 25.26 % in February from 26.48 %, and the committee expects the disinflation trend to continue as monetary conditions align with 4.4 % GDP growth in 2024 and improved supply of staple goods; monthly CPI eased to 1.59 %. Base money shrank 3.62 % in February while M2 in local currency rose 1.26%, and credit to the economy grew 3.47% to AOA 6.24 trn. The goods trade surplus widened to USD 1.51 bn in February but is 20.6 % lower year-to-date; international reserves stood at USD 15.34 bn, covering 8.16 months of imports after drawdowns to finance the Treasury. Externally, global trade frictions and weaker commodity demand have pushed Brent prices down 4.5 % on the month to USD 74.95/bbl, with forecasts below USD 70 by end-2025.
Rate evolution
From July 2025 to September 2026, the National Bank of Angola cut the policy rate by 475 basis points to 14.75%, after a hold at 19.5%, reductions through January 2026, a pause in March and renewed easing in May, July and September. The move from July 2025’s hold to the September-November-January easing cycle was driven by a consistent slowdown in inflation, supported by greater availability of consumer goods, liquidity conditions judged appropriate for economic activity and exchange-rate stability, with the Committee adding that monetary indicators pointed to lower short-term inflation pressures.
That easing was tempered by recurring references to international uncertainty, first around administered-price adjustments and external accounts, and then around intensifying geopolitical tensions and oil prices, prompting a prudent hold in March despite further disinflation. The Bank resumed cutting in May after judging the inflation trajectory and short-term outlook favourable, and in July cited continued disinflation across the country and no visible inflationary pressures in the coming months despite diesel and electricity price adjustments and base money growth linked mainly to the Treasury’s clearance of 2025 arrears to companies. In September, it lowered the policy rate by 100 basis points and cut the reserve requirement ratio in domestic currency to 16.5%, citing progress in inflation and its short- and medium-term outlook. Annual inflation declined to 8.78% in August, while the Bank maintained its end-2026 inflation projection at 8.6% with a margin of plus or minus 1 percentage point and raised its GDP growth forecast to 6.15% on stronger non-oil activity.