Monday, November 26, 2012

Angola holds rate steady as inflation rises slightly

    The central bank of Angola kept its base rate (BNA) unchanged at 10.25 percent, noting the inflation rate had ticked up slightly in October while credit to the economy expanded by a monthly 1.94 percent for an increase of 19.45 percent since the start of the year.
    Banco Nacional de Angola has held its base rate steady all year and the inflation rate rose 0.91 percent in October from September for an annual rate of 9.76 percent, up from September's rate of 9.65 percent, the lowest level this year.
    Reducing inflation to single digit levels has been an aim of the central bank for many years.
    In its statement, the banks said the rise in inflation was due to higher prices of housing, water, and electricity gas & fuel, food, alcohol and tobacco.
    Interest rates had remained stable throughout the month with the LUIBOR overnight at 5.56 percent while the average exchange rate of the kwanza against the U.S. dollar was 95.47 end-October compared with 95.42 at the end of September.
    Local currency credit accounts for 56 percent of total credit to Angola's economy, the bank added.



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