By CentralBankNews.info
Angola’s central bank left its benchmark BNA rate at 16.0 percent, noting the slowdown in August inflation due to an increase in the supply of food and restrained demand.
The National Bank of Angola (BNA), which has raised its rate by 500 basis points this year in an effort to curb inflation, encourage savings and reduce the need for foreign exchange, added that it had also taken note of the deceleration in money supply.
Angola’s monthly inflation rate in August eased to 3.30 percent from July’s 4.04 percent but on an annual basis it accelerated to 38.18 percent in August from 35.3 percent in July.
The BNA said the restricted monetary base grew by 1.91 percent in August and while money supply was up by an annual 22.17 percent, in real terms it represented a contraction.
Angola is suffering from an acute shortage of foreign exchange due to the fall in crude oil prices and the central bank has devalued the kwanza several times in the last year.
Today the kwanza was trading at 165.7 to the U.S. dollar compared with 135.2 at the start of the year.
The National Bank of Angola issued the following statement:
- Classes “Food and Drinks Alcoholic,” “Miscellaneous goods and services” and “health” were the most varied and contributed to inflation in this period;
- Among the other provinces, the subject of official collection of the general price level, by the National Institute of Statistics, Lunda Norte was the province that registered the highest rate of monthly inflation, 4.67%, and the province of Cunene lowest rate, 2.96%;
- In the same period, the LUIBOR Overnight went from 13.92% to 13.93% per annum and with maturities of 3 and 12 months the rates stood at 16.28% and 17.87% per year, respectively;
- According to preliminary data, in August 2016, credit to the economy increased by 0.58%. On the other hand, the gross credit to the Central Government (titled and not titled) increased 0.61%, while deposits of the Government in the banking system contracted by 5.90%;
- The Restricted Monetary Base in MN expanded by 1.91%. However, the payment methods represented by the M2 aggregate declined by 1.00% in August 2016. In the past 12 months, the money supply expanded 22.17%, reflecting a contraction in real terms.
- In August, commercial banks have acquired foreign exchange of USD 1515.00 million in the foreign exchange market, of which $ 1,320.00 million to BNA and the remainder to its customers, which compared to the previous month, representing a growth of 39 19%;
- In the primary exchange market, the average exchange rate of the Kwanza against the dollar stood at Kz 165.888, maintaining a certain stability.
II. MONETARY POLICY COMMITTEE DECISIONS
- Maintain Basic Interest Rate – Rate BNA – at 16.00% per annum;
- Maintain Interest Rate Standing Facility Liquidity Lending at 20.00% per annum;
- Maintain Interest Rate Standing Facility Liquidity Absorption to seven days at 7.25% per annum;