- Decision
- Maintain
- Rate change
- 0 bps
- BNA rate
- 17.5%
The Monetary Policy Committee (CPM) of the National Bank of Angola (BNA) kept the BNA rate unchanged at 17.5 % and maintained the standing lending and absorption facilities at 18.5 % and 16.5 %, respectively, arguing that a prudent stance is warranted given heightened international uncertainty and escalating geopolitical tensions. After cumulative cuts of 150 bp between September 2025 and January 2026, the CPM this time focused on liquidity, lowering the kwanza reserve-requirement ratio to 17.5 % from 18 % to support interbank market activity. Domestically, disinflation persisted: monthly CPI slowed to 0.52 % in February and headline inflation eased to 13.35 % y/y, while 2025 GDP grew 3.13 % thanks to a 5.38 % expansion in the non-oil sector that offset a 5.22 % fall in oil output; credit to the economy advanced 18.56 % y/y to AOA 7.23 trn. Externally, the goods surplus slipped to USD 2.45 bn in January–February, yet international reserves held at USD 15.93 bn, equal to 7.4 months of import cover. The committee highlighted oil prices above USD 80/bbl and global trade and geopolitical frictions as key upside risks to world inflation and signalled it will retain a cautious policy approach to safeguard price stability.
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.