Angola’s benchmark interest rate was cut by 125 basis points on Tuesday, from 17% to 15.75%, the Banco Nacional de Angola (BNA) announced at the close of its 130th Monetary Policy Committee (MPC) meeting.
The MPC also resolved to lower the rate on the permanent liquidity-providing facility from 18% to 16.75%, and the rate on the permanent liquidity-absorbing facility from 16% to 14.75%.
“The decision to reduce the key rates is grounded in the consistent deceleration of inflation observed, as well as the outlook for the continuation of that trend in the near term,” the committee’s final communiqué stated. The meeting was held in Malanje and the results were presented by BNA Governor Manuel Tiago Dias.
Monthly inflation stood at 0.52% in June, while the year-on-year rate maintained its downward trajectory, settling at 10.11%. Over the same period, Angola’s gross domestic product expanded 5.32% in the first quarter of 2026, according to figures presented by the governor.
On the international front, the communiqué noted that the global economic environment “continues to be characterised by uncertainty”, particularly owing to the conflict in the Middle East, which is weighing on markets, global supply chains, and inflationary pressures.
In energy commodity markets, the average price of a barrel of crude oil fell 18.72%, dropping from US$104 in May to US$84.56 in June, following negotiations between the United States and Iran and the prospect of normalised oil flows through the Strait of Hormuz.
On the monetary side, year-on-year growth in the monetary base was driven primarily by the National Treasury’s clearance, in the second quarter of 2026, of arrears owed to companies dating from 2025. The domestic-currency monetary aggregate contracted 0.12% in June, accumulating a variation of 14.31% and a year-on-year change of 24.8%.
The stock of credit to the economy in domestic currency reached the equivalent of US$7.87 billion in June, representing a 0.41% increase on the previous month. On a cumulative basis, however, credit recorded a contraction of 1.72%.
In the external sector, the cumulative goods trade balance through June reached US$10.56 billion, US$2.58 billion more than in the same period of 2025. This result was driven by higher export values, which grew by US$3.59 billion, outpacing the US$1.01 billion rise in imports.
According to the communiqué, the favourable export performance reflected an improvement in terms of trade supported by higher international oil prices, which offset a contraction in diamond revenues.
The increase in imports was driven primarily by fuels, which totalled US$2.2 billion — an increase of 112.5% compared with the same period a year earlier.
International reserves stood at US$14.93 billion in June, equivalent to 6.2 months of import cover for goods and services. The BNA attributed the decline in reserve coverage to a reduction in the level of reserves alongside an increase in goods imports and external service payments.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/07/15/mundo/angola/angola-banco-central-reduz-taxa-de-juro-para-1575/
