Friday, February 13, 2015

Angola cuts liquidity absorption rate 175 bps after budget

   Angola's central bank slashed the interest rate on its standing facility for absorbing liquidity by 175 basis points to 0.0 percent at an extraordinary meeting by its monetary policy committee following the government's approval of its 2015 economic program.
    But the National Bank of Angola maintained its benchmark Basic Interest Rate (BNA) at 9.00 percent along with its rate for standing liquidity lending at 9.75 percent. The central bank last changed its policy rate in October 2014 when it raised it by 25 basis points.
    The central bank said the 2015 program includes preserving real Gross Domestic Product growth of 6.6 percent, an inflation rate in a 7 - 9 percent range and gross international reserves that would cover around six months of imports.
     The next scheduled meeting by the central bank's policy committee is Feb. 27.
    Angola, Africa's second-largest crude oil producer, is being hit by the fall in oil prices and the government has said revenue from oil will decline and only cover 37 percent of spending needs compared with 70 percent in 2014.
    On Thursday Angola's government submitted its 2015 draft state budget to the parliament.

    www.CentralBankNews.info

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