Monday, July 29, 2013

Angola holds rate, lower inflation, rising credit, stable FX

    Angola's central bank held its main policy rate steady at 10.0 percent, citing a decline in inflation, rising credit to the economy, lower market interest rates and a stable exchange rate.
    The National Bank of Angola (BNA), which last cut its rate by 25 basis points in January, said the monthly inflation rate in June was 0.63 percent, down from May's 0.87 percent, for an annual rate of 9.19 percent compared with 9.25 percent.
    Credit extended to the economy rose by 1.20 percent in June, reaching an outstanding stock of 2.752 billion kwanza, with an average interest rate on credit extended 181 days to 1 year of 12.17 percent for individuals and 14.41 percent for corporates, "maintaining the downward trend in interest rates."
    The average reference exchange rate for the kwanza was 96.326 to the U.S. dollar at the end of June, compared with 96.045 at the end of April, "maintaining stability in the foreign exchange market."
    During June the BNA sold $1.6525 billion worth of foreign exchange to the market for a total of $9.6345 billion in the first six month.
    While the BNA held its main rates steady, it added that its rediscount operations would be indexed to the interest rate of the marginal lending liquidity.


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