Angola’s central bank cut its main interest rate by 100 basis points to 17.50 percent on Wednesday, extending an easing cycle as inflation falls faster than expected in the oil-producing southern African nation.
The move follows two consecutive 50-basis-point cuts at the Bank of Angola’s previous monetary policy meetings, signalling growing confidence that price pressures are coming under control.
Annual inflation slowed to 15.70 percent in December, sharply lower than 27.50 percent a year earlier and now below the central bank’s end-2025 target of 17.50 percent, according to official data.
The central bank said the disinflation trend reflects tighter monetary conditions earlier in the cycle, improved supply conditions and relative stability in the kwanza, Angola’s currency.
Economists say the rate cut could help support economic activity, particularly credit growth, while still keeping real interest rates positive.
More Read
Angola has been gradually loosening policy after one of the most aggressive tightening cycles in the region, as authorities sought to rein in inflation driven by currency depreciation and higher import costs.
The central bank did not give explicit guidance on future moves but said it would continue to monitor inflation risks and global financial conditions closely.
