Monday, October 29, 2012

Angola keeps rate on hold, fx and interest rates stable

    The central bank of Angola kept its base rate unchanged at 10.25 percent, saying the exchange rate and interest rates have been stable in the last month.
    Angola's annual inflation rate eased to 9.65 percent in September, the lowest level so far this year, from 9.87 percent in August.  The decline of inflation to a single-digit level has been an aim of Banco Nacional de Angola for many years.
    The central bank last cut its interest rate by 25 basis points in January, but earlier this month the bank's governor said in a speech that a sudden cut in the bank rate would not improve credit to the economy, nor help contain inflation.

    The bank said credit extended to the economy increased by 2.6 percent in September for an increase of 17.19 percent since the beginning of this year. Interest rates were also stable last month with overnight LUIBOR at 5.40 percent annually, the bank said.

    The average exchange rate of the kwanza currency against the U.S. dollar was 95.42 at the end of September "reflecting the stability observed since the beginning of the year," the bank added.


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