Angola: BNA Keeps Basic Interest Rate At 10,25 Percent Per Year

Luanda — Angola’s National Bank (BNA) Monetary Policy Committee Monday in Luanda decided to maintain its basic interest rate at 10,25% per year, Angop learned here.

The decision came after an analysis of the country’s macroeconomic indicators.

According to a press release produced at the end of the 11th ordinary session of that body, BNA decided to further maintain the interest rates of the Permanent Facilities Lending and Liquidity Absorption at 11,75% and 1,50% per annum respectively.

According to a press release from the 11th ordinary session of the said body, BNA also decided to maintain unchanged the Standing facilities for the absorption and provision of liquidity at 11,75 percent and 1,5 percent a year, respectively.

In July this year, the country’s monthly inflation rate was 0,66 percent and the cumulative rate of the last 12 months of 10,02 percent, that is lower than that recorded in the corresponding period of 2011, which was 14,12%.

Food and non-alcoholic beverages, hotels, cafes and restaurants, and miscellaneous goods and services recorded the highest hiking in prices in July.

The interest rates on the interbank market, adds the note, followed the downward trend that has been observed since the beginning of the year. Indeed, overnight LIBOR stood at 5,20%, which is a reduction of 0,19 percent in July.

The one month and 12 month LIBOR rates were respectively 7,48% and 10,64% per year.

The credit to the economy grew by 11,22% since early this year and its component in national currency rose 22,99%. The average exchange rate reference of the Kwanza (Angolan currency) to the U.S. Dollar stood at 95,38 late in July this year, the press note says.