Angola: Central Bank cuts rates in November
Bank reduces rates for a second consecutive time: At its final meeting of the year on 17–18 November, the National Bank of Angola (BNA) reduced its BNA basic reference rate from 19.00% to 18.50%, mirroring September’s decision and matching market expectations.
Decreasing inflation triggers cut: A further rate cut was motivated by headline inflation slowing in October, a trend that began in mid-2024 and during which price growth has almost halved. In addition, the Bank lowered its headline inflation projection from 17.5% to 17.0% and sees price pressures ending 2026 at 13.5%. Finally, the rate cut aimed to buttress economic activity, which posted a weak reading in Q3.
BNA to continue easing cycle in 2026: The vast majority of our panelists see more interest rate cuts by the end of next year, as inflation should continue easing. Crude prices remain key to monitor, given their impact on the kwanza. The Central Bank will reconvene on 13–14 January.