"Considering the consistency of the slowdown in the evolution of prices in the national economy, particularly since the beginning of the current year, as a result of the continuous and rigorous control of liquidity, the appreciation of the kwanza in relation to the main currencies used in transactions abroad and the increase in the supply of essential goods for widespread consumption, the National Bank of Angola [BNA] believes that conditions are met for the reduction of the key interest rate", announced the financial regulator, at the end of the monetary policy committee meeting.
At the meeting, the bankers decided to "reduce the Basic Interest Rate from 20 to 19.5 percent, reduce the interest rate on the Standing Liquidity Lending Facility from 23 to 21 percent, keep unchanged the interest rate on the Standing Liquidity Absorption at 15 percent".
In addition to the economic environment in Angola, the decision also took into account "the external context and inherent risks, given the economy's exposure to the oil sector and the weight of imported foodstuffs in the basket of supply to the domestic market", reads the statement. released statement.
Until August, the balance of trade with foreigners was very positive, adds the financial regulator: "The goods account recorded a surplus balance of 23.3 billion US dollars in accumulated terms until August 2022, an increase of 78.5 percent compared to the same period in 2021, this positive performance reflects the increase in the value of exports by 67.8 percent, which exceeded the 49.2 percent growth observed in imports".
The high price of oil contributed decisively to this figure, not only in relation to production costs, but also in relation to what was budgeted at the end of last year for 2022 and in comparison with the price of oil in comparison with the last year.
"In the real sector, data on employment and the climate of confidence of managers and entrepreneurs, released by the National Institute of Statistics (INE), for the second quarter of 2022, show the consolidation of growth in economic activity", said the Bank. Angola National.
The regulator pointed out that "unemployment fell for the third consecutive quarter, reaching a rate of 30.2 percent, below the rate recorded in the same period last year, which was 31.6 percent, while the confidence of managers and entrepreneurs of the non-financial sector regarding the evolution of the national economy in the short term was optimistic".
In August, the BNA said, inflation continued to decelerate, reaching 19.8 percent, down from 21.4 percent in the previous month and falling even further compared to the same period last year, when it stood at 26.1 percent.
"The Monetary Policy Committee maintains the perspective that the inflation rate at the end of the current year will be below the initial forecast of 18 percent, moving towards the single-digit objective in the medium term", he concluded.