- Decision
- Lower
- Rate change
- 50 bps
- BNA rate
- 19%
The Monetary Policy Committee of the National Bank of Angola cut the BNA Rate by 50 bp to 19.0 percent at its 15–16 September meeting, and lowered the standing lending and deposit facilities to 20.0 percent and 17.0 percent respectively, citing the continued deceleration of inflation towards the 2025 objective amid lingering global uncertainties and softer external accounts. After holding the key rate at 19.5 percent through at least January–July 2025, this is the first reduction this year. The statement gives no new operational changes beyond the symmetrical 50 bp adjustments to the corridor. Monthly consumer-price growth eased to 1.09 percent in August from 1.47 percent in July, pushing 12-month inflation down to 18.88 percent; authorities link the trend to adequate liquidity, improved supplies of staple goods and a stable exchange rate, while base money contracted 0.23 percent in August and credit in local currency expanded 29.2 percent year on year. The merchandise-trade surplus narrowed to USD1.31 bn in August and is 33 percent below the 2024 period-to-date level, though international reserves remain at USD15.1 bn, covering 7.9 months of imports. Globally, weaker trade, geopolitical tensions and lower oil prices—projected to stay below USD70/bbl through 2026—underscore a cautious stance by major central banks. The committee will convene next on 17–18 November 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.