Angola’s Central Bank Cuts Interest Rates for the Second Time in 2023 as Inflation Reaches Multi-Year Low
Angola’s central bank has cut its main interest rate for a second time this year, lowering it by 100 basis points to 17% on Tuesday, after the country’s annual inflation eased for 13 consecutive months to 11.5%, its lowest level in nearly eight years. The decision was made with the intention of continuing to influence price stability in the economy and ensuring a course of inflation in line with medium-term objectives. According to the MPC, inflation will be between 9% and 11% by year-end.
As the third-largest oil producer in Africa, Angola’s economy is highly dependent on the oil industry. However, in recent years, the country has been experiencing an economic downturn due to falling oil prices and declining production. The cut in interest rates is expected to boost economic growth by making credit more affordable for businesses and consumers.
The kwanza, Angola’s currency, is reportedly the second-best performing currency in Africa this year when compared to the US dollar. Despite the challenges facing developing markets, such as Silicon Valley Bank’s demise and Credit Suisse’s issues, the kwanza has remained mostly steady. This is likely due to the relative stability of inflation, which is being kept in control by the central bank’s monetary policies. Read More..
