- Decision
- Lower
- Rate change
- 100 bps
- BNA rate
- 14.75%
The National Bank of Angola (BNA) Monetary Policy Committee cut the BNA rate by 100 basis points to 14.75%, citing progress in disinflation and the short- and medium-term inflation outlook. The rate has fallen 475 basis points from 19.5% since September 2025. The BNA also lowered its liquidity facility rates by 100 basis points, setting the absorption and provision rates at 13.75% and 15.75%, respectively, and reduced the domestic-currency reserve requirement to 16.5%. Annual inflation slowed to 8.78% in August, and the central bank maintained its end-2026 forecast at 8.6%, within a one-percentage-point range. Second-quarter gross domestic product grew 8.74% year on year, led by non-oil activity, prompting the BNA to raise its 2026 growth forecast to 6.15%, while domestic-currency credit expanded 11.72% year on year. International reserves stood at USD 15.32 billion, covering 6.59 months of goods and services imports, while the cumulative goods-account surplus reached USD 13.55 billion through August. The global economy remained resilient, though geopolitical tensions increased commodity-market volatility, with Brent crude averaging USD 88.07 per barrel in August.
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.