National Bank of Angola cuts BNA rate by 125 bp to 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.