"We expect interest rates to remain unchanged in 2021, as high inflation and high exchange rate risk should persist" next year, analysts write in a commentary on maintaining the key interest rate.
The BNA decided to maintain the interest rate at 15.5 percent at its last meeting, arguing that the national economy, like the global economy, remains subjugated by the effects of the covid-19 pandemic.
"Despite weak economic prospects this year and low oil prices, the central bank has been unable to lower interest rates to boost the economy due to exchange rate weakness and decreasing foreign exchange reserves," reads the note sent to customers, to which Lusa had access.
In the commentary, analysts say that "despite depressing economic conditions, inflation has remained at an average of 21.6 percent in the first ten months of this year, up from 17.2 percent in the same period last year.
Since the beginning of the year, the kwanza has already fallen by 25 percent "mainly due to falling oil prices and the exchange rate liberalization launched last year," the analysts conclude.
Last week, the BNA maintained the interest rate at 15.5 percent, as well as the mandatory reserve coefficients, and will continue to monitor liquidity in the market to contain the seasonal effects of the festive season.
The BNA's Monetary Policy Committee (CPM) analysed the behaviour of the main economic indicators, as well as the impacts of the measures taken previously on the different sectors of the economy.
In the note released after the meeting, the BNA pointed out that the reform of the functioning of the foreign exchange market was continued on the foreign exchange supply side, with the National Treasury joining the FXGO platform.
The stock of the Gross International Reserves (RIB) stood at USD 15.25 billion in October 2020, which corresponds to a reduction of USD 139.83 million in relation to September.
"Despite the reduction observed, these were equivalent to 11 months of imports of goods and services, above the six-month convergence target of the Southern African Development Community (SADC)," he said.
The CPM also maintains the 25 per cent inflation forecast for the current economic year "so it will continue to monitor all monetary determinants of inflation.
The next meeting of the CPM is scheduled for 28 January 2021.
