LUANDA, Nov 21 – Angola’s central bank increased its main interest rate (AOINTR=ECI) from 17% to 18% on Tuesday, aiming to curb rising inflation which it hopes to get back into single digits in the medium term.Thank you for reading this post, don't forget to subscribe!
Inflation climbed to 16.58% year-on-year in October from 15.01% in September (AOCPIY=ECI).
It had slowed significantly last year and over the first half of 2023, before being spurred by a steep depreciation of the kwanza currency over May-June when the kwanza dropped by more than one-third against the U.S. dollar.
Bank of Angola Governor Manuel Tiago Dias told a news conference that the bank now saw inflation ending the year above 19%, versus an earlier target of 14%.
He said the kwanza had now mostly adjusted to a reduction in foreign-exchange supply.
During a visit last month, International Monetary Fund officials urged Angola to let the kwanza float, saying it worked like a shock-absorber for external events.
Tiago Dias insisted on Tuesday that the exchange rate was floating, even though the kwanza has stayed in a tight range around 830 to the dollar since early July.