African markets

Angola’s central bank postpones policy decision to September 30

The Central Bank of Angola has postponed the final decision and the announcement of its monetary policy decision to Thursday, September 30 from today, as planned.

The Bank of Angola (BOA), which raised its rate in July for the first time since November 2017, said on its website that the 100th session of its monetary policy committee would end on September 30, so Final deliberations and public release, including the usual press conference, would take place on that date.

The central bank said the committee meeting began to update the bank’s operating framework.

The BOA raised its benchmark rate by 450 basis points to 20.0% in July in response to faster-than-expected inflation, the bank’s third monetary policy tightening this year.

The rate hike came as a surprise as the monetary policy committee moved its scheduled July 29 meeting forward by four weeks to July 2 following the release of inflation data that showed higher than expected inflationary pressures.

After stabilizing around 25% from November to May, Angola’s inflation rate accelerated and rose to 26.09% in August from 25.76% in July.

Following the BOA’s rate hike in July, Governor Jose de Lima Massano said in an interview that maintaining the benchmark interest rate would help ensure greater stability in the economy.

However, he also said the bank would consider changing borrowing costs if there was a significant change in the path of inflation.

Massano also said that the Angolan economy is expected to stagnate this year after 5 consecutive years of contraction and a first return to growth in 2022.

It forecasts growth of 2.36% in 2022 and growth of 3.0 to 4.0% from 2023.

In June, the Angolan National Assembly amended the country’s constitution to give more independence to the central bank by changing the mode of appointment of the governor and the mandate of the bank to focus on price stability and financial stability. .