"We believe that for the rest of the year the central bank will keep the benchmark interest rate at 20 percent, although the risks to our forecast are up," write analysts at this consultancy owned by the same owners of financial rating agency Fitch Ratings, which pulled the forecast on price developments from 21.5 percent to 23.5 percent.
In the note sent to customers, and to which Lusa had access, analysts point out, however, that "the moderation of prices slower than anticipated, together with the renewed commitment of the National Bank of Angola to control inflation, may lead to a rate increase later this year."
The National Bank of Angola raised key interest rates by 450 basis points (4.5 percentage points) to 20 percent at this month's meeting, the first increase in more than three years, which, according to Fitch, "reflects the Parliament's decision last month to revise the central bank's mandate to give it a greater focus on price stability."
This increase led Fitch to revise its forecast on the rate's evolution, which analysts expect will remain at 20 percent by the end of the year, as inflation stood at 24.9 percent in May, the highest rate. since December last year, when it registered 25.1 percent and the second highest in the last four years.
