- Decision
- Maintain
- Rate change
- 0 bps
- BNA rate
- 19.5%
The Monetary Policy Committee of the National Bank of Angola on 21 May 2025 left the benchmark BNA rate unchanged at 19.5%, maintained the standing lending and deposit facility rates at 20.5% and 17.5% respectively, and cut the kwanza-denominated reserve-requirement ratio by 1 pp to 19%, citing heightened global uncertainty but continued domestic disinflation. The key rate has been steady at 19.5% in the January and March 2025 meetings. The corridor around the policy rate therefore remains 17.5%–20.5% while the lower reserve ratio aims to support interbank market activity. Monthly consumer price inflation eased to 1.34% in April from 1.38% in March, pulling 12-month inflation down to 22.32%, helped by greater supplies of basic goods, appropriate monetary conditions and a relatively stable exchange rate; base money nevertheless rose 2.23% in April, M2 contracted 1.07% and kwanza-denominated credit grew 1.25% m/m to AOA 6.31 trn. The merchandise trade surplus narrowed 14.6% on the month to USD 1.16 bn, while international reserves stood at USD 15.48 bn, covering 8.2 months of imports. Externally, the committee highlighted weaker global growth prospects after the IMF cut its 2025 world GDP forecast to 2.8% and noted lower oil prices, with Brent averaging USD 66.46/bbl in April. Policymakers see the disinflation trend persisting despite external headwinds and will review the stance at their next meeting scheduled for 17–18 July 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.