Angola’s central bank cut its benchmark lending rate by 50 basis points to 17 percent on Thursday, as inflation in the oil-producing Southern African nation continued to slow.
The decision marks the latest monetary policy adjustment by the Bank of Angola as authorities seek to support economic activity while steering inflation toward single-digit levels.
Annual inflation eased to 11.58 percent in April, down from 12.42 percent in March, according to official figures released alongside the rate decision.
The slowdown in price growth has provided policymakers with greater room to ease borrowing costs after maintaining a cautious stance earlier this year amid concerns over global economic uncertainty and geopolitical tensions linked to the conflict involving Iran.
At its previous policy meeting in March, the central bank left rates unchanged, citing external risks and volatility in international markets.
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Thursday’s move signals growing confidence among policymakers that inflationary pressures are moderating, although officials continue to monitor global commodity prices and exchange rate developments closely.
Angola remains heavily dependent on oil exports, making its economy sensitive to fluctuations in global energy markets and external financial conditions.
Higher oil revenues in recent years have helped support fiscal stability and foreign exchange reserves, but authorities have continued to face challenges linked to inflation, currency pressures and broader economic diversification.
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The Bank of Angola has repeatedly stated that reducing inflation to single-digit levels remains one of its main policy objectives.
Analysts say the latest rate cut could help lower financing costs for businesses and households while supporting investment and consumption in the wider economy.
However, they caution that the central bank is likely to maintain a measured approach to further easing given persistent global uncertainty and the risk of renewed price pressures.
Like several African economies, Angola has faced elevated inflation in recent years due to currency depreciation, supply chain disruptions and rising import costs.
The moderation in inflation over recent months has been viewed as a sign that tighter monetary conditions and improved macroeconomic stability are beginning to take effect.
Economists say future policy decisions will likely depend on inflation trends, oil price movements and the broader external environment, particularly developments affecting global energy and financial markets.
