LUANDA, Mar 12 – Banco Nacional de Angola has kept its benchmark interest rate unchanged at 17.5%, marking the first pause in its monetary policy cycle since August.
The decision comes as global oil prices surge amid escalating geopolitical tensions linked to the conflict involving the United States, Israel and Iran.
Governor Manuel Tiago Dias said the monetary policy committee opted to maintain the current rate due to ongoing uncertainties in the global economic environment.
In a statement, the central bank noted that the move reflects a cautious policy stance given the risks posed by geopolitical tensions and their potential impact on the domestic economy.
Although rising oil prices generally benefit Angola, the country still imports most of its refined fuel products. Higher prices for gasoline and diesel could therefore place upward pressure on inflation.
Angola is currently Africa’s third-largest crude oil producer, meaning changes in global oil markets have significant implications for its economic outlook.
Global benchmark Brent crude was trading close to $100 per barrel on Thursday, supported by supply disruptions and shipping tensions linked to the ongoing conflict.
Meanwhile, inflationary pressures in the country have shown signs of easing. According to Instituto Nacional de Estatística, annual consumer inflation slowed to 13.35% in February from 14.56% in January.
Despite the slowdown in inflation, policymakers appear to be maintaining a cautious approach as they monitor global energy market developments and their possible effects on the Angolan economy.
