- Decision
- Lower
- Rate change
- 125 bps
- BNA rate
- 15.75%
The Monetary Policy Committee of the National Bank of Angola cut the BNA rate by 125 bp to 15.75%, and lowered the standing liquidity provision and liquidity absorption facility rates to 16.75% and 14.75%, citing the consistent deceleration of inflation and expectations that this trend will continue in the short term; the move followed a hold at 19.5% in July 2025, 50 bp cuts in September and November 2025, a 100 bp cut in January 2026, a hold in March and a 50 bp cut in May to 17.0%. June monthly inflation eased to 0.52% and annual inflation to 10.11%, leading the central bank to revise down its end-2026 inflation projection to 8.6% with a margin of plus or minus 1 percentage point, while it raised its GDP growth forecast to 3.6% after first-quarter GDP grew 5.32%, driven by the non-oil sector, and reported local-currency credit to the economy up 12.49% year on year in June. Externally, the cumulative goods account surplus widened to USD10.56 billion by June and international reserves stood at USD14.93 billion, covering 6.20 months of imports of goods and services. The central bank said the global backdrop remained uncertain because of conflict in the Middle East, with the International Monetary Fund lowering its 2026 world growth forecast to 3.0% and raising global inflation to 4.70%, while Brent fell to USD84.56 per barrel in June from USD104.04 in May. The committee said it does not see inflationary pressures emerging in the coming months.
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.