"We predict that prices should continue to rise, hence this upward revision of inflation, but, naturally, for this not to happen, it is necessary that we continue with the efforts that have been made on the demand side in order to control liquidity in circulation in the economy, which is the responsibility of the BNA" (National Bank of Angola), said its governor, Manuel Tiago Dias, on Friday.
The BNA decided, on Friday, to increase its policy rate, from 19 percent to 19.5 percent, and the interest rate on the Permanent Liquidity Provision Facility, from 19.5 percent to 20.5 percent, in an attempt to curb inflation, decided to maintain the interest rate on the Permanent Liquidity Absorption Facility at 18.5 percent and increase the coefficient on mandatory reserves in national currency from 20 percent to 21 percent.
The BNA governor, who was speaking at the end of the ordinary meeting of the Monetary Policy Committee (CPM) of the body he oversees, also assured, in response to journalists, that the change in the BNA rate will not have an impact on attracting external financing.
"Clearly not, because Angola is an economy open to the outside world and the size of transactions that the country carries out on international markets is extremely limited, which is why we say it is a small open economy", he maintained.
"We are hopeful that the measures that were taken to increase the supply of essential goods in the economy will have the expected effects and, naturally, contribute to the slowdown in prices in our economy", he said.
Inflation increased again in April, for the 12th consecutive month, registering a year-on-year variation of 28.02 percent, a maximum of almost seven years, according to the National Statistics Institute (INE).
The Quick Information Sheet (FIR) of the National Consumer Price Index (IPCN) indicates that this variation represents an increase of 17.61 percentage points in relation to that observed in the same period of the previous year.
In Luanda, prices shot up 38.87 percent, an increase of 28.77 percentage points compared to the same period last year.
Regarding the increase in the minimum capital required by the regulator for financial institutions (set at 15 billion kwanzas – 16.5 million euros), the deputy governor of the BNA, Pedro Castro e Silva, noted that the Russian bank VTB, "in a particular situation due to US sanctions, he is the only one missing".
Therefore, "being in this situation and also having a portfolio of deposits in North American currency, it is unable to operate normally in the same way as other banks operate, so, until this situation is resolved, it is normal for the bank to continue not to carry out transactions, including the issue of minimum share capital", he explained.
Asked about the possibility of Banco Keve becoming a shareholder in the food group Carrinho (which already owns Banco de Comércio e Indústria), as it had financed the increase in its capital indirectly, Pedro Castro e Silva said that the matter is under analysis by the Competition Regulatory Authority (ARC).
"The fact that (the Carrinho Group) already has a bank and now the possibility of having a stake in another means that an analysis by ARC is necessary, and this is the stage at which this project is," he responded to journalists.
