Angola’s central bank, the Banco Nacional de Angola (BNA), has cut its main benchmark interest rates and the mandatory reserve coefficient in local currency by one percentage point, citing a sustained downward trajectory in inflation.
The decision was taken by the BNA’s Monetary Policy Committee, which convened on Monday and Tuesday (15) to assess recent developments in the domestic and international economy, the macroeconomic outlook, and risks to price stability, according to state news agency Lusa.
BNA Governor Manuel Tiago Dias announced the reduction of the benchmark interest rate from 15.75% to 14.75%. The standing liquidity provision facility rate was lowered from 16.75% to 15.75%, while the standing liquidity absorption facility rate fell from 14.75% to 13.75%.
In a parallel move, the Committee decided to reduce the mandatory reserve coefficient in local currency from 17.5% to 16.5%.
“The reduction of monetary policy rates and the mandatory reserve coefficient by one percentage point is grounded in the progress observed in the inflation trajectory and in the near- and medium-term outlook for its evolution,” Governor Dias said.
Monthly inflation stood at 0.59% in August 2026, below the 0.75% recorded in July. On a year-on-year basis, the rate settled at 8.78%, maintaining its decelerating trend.
According to the BNA, the slowdown was observed across the entire national territory. Most goods and services categories recorded single-digit variations, with the exception of education, where prices rose 19.33%. “In light of this result, the Monetary Policy Committee expresses concern over the frequency and magnitude of price adjustments in education services,” the institution stated.
Despite the rate cuts, the Committee maintains its projection of 8.6% inflation by end-2026, with a variation band of one percentage point.
Economy grows 8.74%
The Angolan economy recorded year-on-year growth of 8.74% in the second quarter, driven by the performance of the non-oil sector, which expanded 9.24%, according to data presented by the BNA Governor.
The institution noted that the non-oil sector’s performance has helped to absorb uncertainties in the international environment, characterised by “greater volatility in commodity markets” and the consequent fluctuations in the price of Brent crude.
In the monetary market, the monetary base in local currency — comprising currency in circulation and banking reserves — grew 6.8% in August, recovering from a contraction of 2.5% in July.
Credit to the economy in local currency reached approximately €6.9 billion. The figure represents a cumulative contraction of 1.2%, but on a year-on-year basis corresponds to an expansion of 11.72%, or €719 million.
Exports underpin external accounts
On the external side, the cumulative balance of the goods account remained in surplus through mid-August, with year-on-year growth driven by an increase in export revenues that outpaced import growth.
Crude oil receipts offset a decline in diamonds’ share of total export revenues. On the import side, fuels continue to exert a significant influence.
Fuel imports reached €2.56 billion, representing an increase of 114.5% compared to the same period in 2025.
International reserves stood at €13.26 billion in August, providing import cover of 6.59 months of goods and services.
The BNA’s next Monetary Policy Committee meeting is scheduled for 16 and 17 November.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/09/16/mundo/angola/angola-bna-reduz-taxa-de-juro-de-referencia-para-147/
