"We believe that the National Bank of Angola (BNA) will keep interest rates unchanged until inflation falls significantly below the current interest rate, which we only see happening in July," analysts write in a comment on the central bank's decision at the meeting this week to keep the basic interest rate unchanged.
"As expected, the central bank kept interest rates unchanged at its first monetary policy meeting of the year, reflecting the fact that inflation peaked in July but remained exceptionally high, while the real interest rate is still at negative territory", reads the note sent to customers, and to which Lusa had access.
Furthermore, they also point out, the devaluation of the kwanza exchange rate between June and the end of September will slow the fall in inflation this year.
The central bank forecasts an inflation rate of 17.5 percent for this year, expecting improvements in the supply of goods and services and the adaptation of monetary conditions to economic activity.
The forecast was made by the governor of the BNA, Tiago Dias, at the meeting of the Monetary Policy Committee (CPM) of the central bank held between Monday and Tuesday.
Tiago Dias said the monthly inflation rate in December last year was 1.70 percent, compared to 1.61 percent recorded in November, with annual inflation standing at 27.5 percent.