Angola Keeps Key Interest Rate Unchanged Amid Easing Inflation
The Central Bank of Angola has decided to maintain its key interest rate at 18%. This decision comes as inflationary pressures in the country begin to ease, with August’s inflation rate recorded at 11.2%, slightly down from 11.5% in July. Annual inflation is moving away from the peak of 13.3% reached in May of this year.
This indicates the regulator's endeavor to uphold economic stability. It is anticipated that a reduction in inflationary pressure will promote investment growth and enhance economic activity. The central bank had previously raised rates 15 times since 2018, aiming to combat high inflation and strengthen the national currency, the kwanza.
Meanwhile, the improvement in the country’s economic situation is also attributed to rising oil prices, which provide additional revenue to the national budget. However, experts caution that political instability and shifts in the global economy could impact future economic forecasts.
Interestingly, despite ongoing high inflation, the country is witnessing positive trends in employment levels and the service sector's development. Experts predict that with further reductions in inflation and the maintenance of the key rate, Angola’s economy might begin to recover.
Thus, careful monitoring by the central bank will be crucial in overcoming current economic challenges and strengthening the country’s financial position.
