Friday, August 28, 2015

Angola raises rate 25 bps on rising inflation and credit

    Angola's central bank raised its benchmark Basic Interest Rate (BNA) by another 25 basis points to 10.50 percent, its fourth rate hike this year, citing rising inflation, growing credit and a depreciation of the kwanza.
    The National Bank of Angola (BNA), which has now raised its key rate by 150 basis points this year, also raised the rate on its standing lending facility lending to 12.0 percent from 11.0 percent while it maintained the rate on its liquidity absorption facility at zero percent.
    Angola's inflation rate jumped to 10.41 percent in July from June's 9.6 percent while the exchange rate of the kwanza has been largely stable since late July. On June 5 the central bank devalued the kwanza by about 6 percent and the central bank has been taking steps to ease U.S. dollar shortage.
   Today the kwanza was quoted at 125.6 to the dollar, down 18 percent since the start of 2015. The BNA said the average exchange rate of the kwanza in July was down 3.64 percent from the previous month at 125.776 per dollar.
    During July commercial banks bought foreign currency worth US$ 1.760 billion in the foreign exchange market of which $1.551 billion was from the BNA.
    Angola is Africa's second largest crude oil exporter so its export revenue has been hard hit by the decline in oil prices.
    But credit to the economy still grew by a cumulative 8.39 percent through July, the BNA said.



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