LUANDA, July 14 – The Bank of Angola has reduced its benchmark interest rate by 125 basis points to 15.75%, as easing inflation gave policymakers room to continue monetary policy easing despite ongoing uncertainty in the global economy.
The latest decision follows a 50-basis-point rate cut in May, reflecting growing confidence that inflationary pressures are continuing to moderate across the Southern African economy.
Official data showed that annual inflation slowed to 10.11% in June, down from 10.88% in May and significantly lower than 19.73% recorded in June last year.
Speaking at a news conference, Bank of Angola Governor Manuel Tiago Dias said the central bank expects inflation to continue declining in the coming months despite risks associated with geopolitical tensions in the Middle East.
According to Dias, the central bank expects the pace of price increases to continue slowing in the near term, despite uncertainties linked to the conflict in the Middle East.
Reflecting the improving inflation outlook, the central bank lowered its year-end inflation forecast to 8.6%, compared with its previous projection of 11.5%.
The bank also revised its economic outlook, increasing its 2026 growth forecast to 3.6% from 3.5%, supported by improving macroeconomic conditions and Angola’s position as one of Africa’s leading oil exporters.
Higher global crude oil prices are expected to provide additional support for the economy by boosting export revenues and government income.
In a further sign of evolving financial policy, the central bank recently added the Chinese yuan to the list of currencies that domestic banks can use to meet their foreign currency reserve requirements, highlighting the growing role of China’s currency in Africa’s financial system.
The latest monetary policy decision underscores Angola’s efforts to balance inflation control with economic growth as the country continues its broader macroeconomic stabilisation programme.
