BNA reduces interest rate to 16.5% and mandatory reserves

Luanda – The National Bank of Angola (BNA) today reduced the interest rate from 18% to 16.5% and also lowered its reserve requirement ratio from 19% to 17%.

The measure was adopted at the end of the meeting of the Monetary Policy Committee (CPM) of the Central Bank, after analyzing the main indicators of the conjuncture, such as the national inflation rate, which registered a reduction for the eighth consecutive month, exchange, among others.

Also contributing to this reduction in interest rates and the reserve ratio are projections that point to below 23% foreseen in the Macroeconomic Program for the year. In addition, a trend is expected for the reduction of the interest rates of credit in the economy.

Since last December, the BNA interest rate was unchanged, after having risen from 16% to 18% in November 2017, a measure taken to control the rise in accumulated inflation at that time.

Last May, the Central Bank decided to reduce the reserve requirement ratio from 21 percent to 17 percent, in order to increase commercial banks liquidity and, consequently, credit to the economy.

Source: Angola Press News Agency