The National Bank of Angola kept its key interest rate at 19.5%, marking ten months of stability. It simultaneously lowered the liquidity absorption rate and reserve requirement ratio to enhance financial liquidity. These actions aim to support projected GDP growth of 4.4% in 2024 and a decrease in inflation to 17.5% in 2025.
In March 2025, the National Bank of Angola decided to maintain its key interest rate at 19.5%, a position it has held for the past ten months. This rate remains the highest since December 2022. In parallel, the central bank implemented measures to enhance liquidity in the market by lowering the liquidity absorption rate and the reserve requirement ratio for commercial banks, both by 100 basis points to 17.5% and 20%, respectively.
These adjustments are part of a broader strategy to stimulate growth in the Angolan financial system, which aims to exceed a growth target of 3%. The country’s GDP is projected to grow by 4.4% in 2024, surpassing the oil sector’s anticipated growth of 3.61%. Furthermore, inflation rates are anticipated to decrease to 17.5% in 2025, down from a closing rate of 27.5% at the end of 2024.
The recent decisions by the National Bank of Angola to maintain the key interest rate and reduce reserve requirements reflect a strategic approach to foster growth and improve liquidity in the financial system. With GDP growth projected at 4.4% and inflation expected to decline, these measures indicate the bank’s commitment to promoting economic stability and development within the country.
Original Source: www.tradingview.com
