- Decision
- Lower
- Rate change
- 50 bps
- BNA rate
- 18.5%
The Monetary Policy Committee of the National Bank of Angola on 18 November 2025 cut the BNA Rate by 50 bp to 18.5% and lowered the standing lending and absorption facilities to 19.5% and 16.5%, respectively, arguing that a “consistent” easing in inflation and softer monetary indicators point to reduced near-term price pressures. After keeping the policy rate at 19.5% from January through July and trimming it to 19.0% in September, this marks a further step in the easing cycle. The narrower corridor is set against a 0.25% October contraction in national-currency base money, while M2 edged up and credit to the economy surged 21.85% y/y to Kz7.06 trn. Monthly inflation slowed to 0.93% in October, pulling headline inflation down to 17.43% y/y; the central bank sees the rate easing to 17.0% ±0.5 pp by end-2025 and to 13.5% in 2026. The goods-account surplus slipped to USD 539 mn in October, but international reserves remained solid at USD 15.31 bn, equal to 7.9 months of import cover. Citing lingering global trade and geopolitical uncertainties alongside moderate world growth and disinflation, the committee reiterated its commitment to safeguarding price stability and signalled that the current disinflation trend should continue.
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.