Central Bank of Angola Cuts Rates for 1st Time since 2023

The National Bank of Angola cut its key interest rate by 100bps to 17.5% in its first meeting of 2026, marking its third rate cut since coming off the terminal level of rate hikes at 19.5% through the start of September. It was the largest rate cut since 2023, justified by evidence of disinflation that allows the Angolan monetary authority to prioritize attending economic growth. The latest data showed that the inflation rate eased to 15.7% in December, the lowest in over two years. Room for more accommodative policy was also owed to less imbalanced flows of the kwanza, preventing the central bank from devaluing the currency.

The National Bank of Angola cut its key interest rate by 50 bps to 18.5% at its November 2025 meeting, marking the second consecutive reduction this year. The decision reflects improving macroeconomic conditions, particularly slowing inflation, and monetary indicators pointing to reduced short-term inflationary pressures. Angola’s annual inflation rate continued to fall to reach 17.43% in October 2025, the lowest since October 2023, extending the downward trend that began in August 2024. Policymakers noted that inflation is expected to keep decelerating through year-end, supported by adequate liquidity, greater availability of essential goods, and relative exchange-rate stability. For 2025, inflation is projected at 17.0%, with a margin of ±0.5 percentage points, while preliminary forecasts for 2026 point to a further decline to 13.5%. The lending facility rate was lowered to 19.5% from 20%, and the absorption facility rate to 16.5% from 17%.

The central bank of Angola lowered the benchmark BNA interest rate by 50bps to 19% in September 2025, the first rate cut since March 2023, amid expectations that inflation will continue to ease, despite ongoing global uncertainties and their impact on the country’s external accounts. The annual inflation rate in Angola fell to 18.88% in August, a new low since November 2023, down from July's 19.48%. Policymakers noted that the slowdown in inflation continues to be driven by lower food prices, particularly in Luanda province, with notable declines in the prices of rice, pasta, powdered milk, cooking oil, beans, and cassava flour. The central bank also lowered the interest rate on the Permanent Liquidity Lending Facility to 20% from 20.5%, while the rate on the Permanent Liquidity Absorption Facility has been reduced to 17% from 17.5%.