- Decision
- Maintain
- Rate change
- 0 bps
- BNA rate
- 19.5%
The Monetary Policy Committee of the National Bank of Angola left the BNA rate unchanged at 19.5 % at its 18 July 2025 meeting and kept the standing lending and absorption facilities at 20.5 % and 17.5 %, respectively, citing continued international uncertainty and domestic inflation risks linked to recent adjustments in administered prices. The policy rate has been steady at 19.5 % since January 2025. To spur interbank rate cuts and support credit to the real economy, the Committee trimmed the local-currency reserve-requirement ratio by 1 ppt to 18 %. Monthly inflation ticked up to 1.21 % in June from 1.17 % in May, but 12-month inflation extended its downward trend to 19.73 % (20.74 % in May; 31 % a year earlier) amid stronger food supply, tight monetary conditions and a stable exchange rate; base money contracted 2.06 % on the month while credit to the economy rose 3.18 % to AOA 6.46 trn, up 31.2 % year on year. Externally, the goods trade surplus widened to USD 1.25 bn in June, though the H1 surplus of USD 7.29 bn lagged the USD 11.90 bn recorded a year earlier; international reserves stood at USD 15.65 bn, equal to 7.9 months of import cover. The Committee noted persistent global trade and geopolitical tensions, a World Bank downgrade of 2025 global GDP growth to 2.3 %, and expectations of oil prices below USD 70/bbl, and will meet next on 18–19 September 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.