Tuesday, December 1, 2015

Angola holds rate but worried over economic slowdown

    Angola's central bank left its basic interest rate steady at 10.50 percent but noted "with concern the slowdown of economic activity in some sectors."
    The National Bank of Angola (BNA), which has raised its rate by 150 basis points this year, also noted that credit to the economy grew by 12.23 percent in the year to October, down from 13.61 percent in the nine months to September, while commercial banks purchased foreign exchange worth US$ 1.724 billion last month of which $1.550 billion to the BNA.
    Angola's kwanza has been stable since late September and was trading at 135.3 to the U.S. dollar today,  down 24 percent since the start of the year. In June the BNA devalued the kwanza by 6 percent  and tightened dollar liquidity in September.
    Angola is Africa's second-largest crude oil exporter and relies on oil exports for almost all its foreign exchange earnings.
    Angola's inflation rate rose to 12.40 percent in October from 11.7 percent in the previous month with a 0.55 percentage point rise in food and alcohol the largest contributor.




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