In March 2025, Angola’s National Bank held the key interest rate at 19.5%, while lowering the liquidity absorption rate and reserve requirement ratio by 100 basis points each. The GDP is projected to grow at 4.4%, exceeding oil sector growth, with inflation expected to slow to 17.5%.
In March 2025, the National Bank of Angola maintained its key interest rate at 19.5%, sustaining this high level for ten consecutive months since December 2022. Despite this, the central bank also reduced the liquidity absorption rate by 100 basis points to 17.5%, along with a similar cut in the reserve requirement ratio for commercial banks to 20%. These adjustments aim to boost liquidity in the financial system, facilitating economic growth beyond the 3% target.
The anticipated GDP growth for Angola in 2024 is projected at 4.4%, surpassing the oil sector growth rate of 3.61%. This reflects the central bank’s strategic efforts to ensure robust economic performance. Additionally, inflation rates are expected to decrease, with estimates of 17.5% for 2025, following a termination rate of 27.5% at the end of 2024.
The decision by the National Bank of Angola to maintain the key interest rate at 19.5% while also cutting reserve requirements reflects a strategic approach to enhancing liquidity in the financial system. With GDP growth forecasts exceeding the oil sector’s performance and a projected decline in inflation rates, these measures are designed to sustain economic vitality beyond prescribed targets.
Original Source: www.tradingview.com
