The Bank Central Angola decided on Wednesday to lower its main interest rate for the third consecutive meeting, building on the continuation of inflation slowed down during the year. The monetary institution has reduced its benchmark interest rate by 100 basis points, bringing it to 17.50%, after two successive decreases of 50 basis points during its previous meetings.

This decision comes in a context of marked deceleration in inflation in this country southern African oil producer. Year-on-year, inflation is rose to 15.70% in December, against 27.50% a year earlier, a level now below the central bank's target of 17.50% for end of the year 2025.

Speaking at At the end of the monetary policy meeting, Governor Manuel Tiago Dias indicated that the central bank anticipated a continuation of disinflation in in the coming months, with an inflation rate expected to be around 13.5% by end of the year. In the longer term, the monetary institution has already announced that it aims to bring inflation below 10%.

This Monetary easing is part of an environment of reforms wider economies. The Angolan government is seeking to strengthen public finances by gradually reducing subsidies and opening More the economy, which has historically been dominated by the State, to investments private.

In this context, the Ministry of Finance announced on Tuesday the extension of a facility for one year of $1 billion in credit granted by JPMorgan for a term of three years, as well as obtaining additional financing of 500 million Of dollars. These measures aim to support the country's macroeconomic stability. and to support the revival of activity in a context of normalization progressive monetary policy.