Angola Leaves Key Policy Rate at 17.5%

The National Bank of Angola kept its key interest rate unchanged at 17.5% on March 12, 2026, marking the first pause following three consecutive reductions. The decision comes amid easing inflation and efforts to sustain economic activity. Annual inflation has been steadily declining since a 31.1% peak in July 2024. Headline inflation fell to 13.35% in February, the lowest since July 2023, from 14.56% in January, supported by a stable kwanza. Angola's economy grew by 5.7% in Q4 2025, the strongest expansion since Q2 2023, quickening from a 2.6% advance in the previous period.

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%.