Angola Trims Key Policy Rate to 14.75%

The National Bank of Angola slashed its key interest rate by 100 bps to 14.75% at its August 2026 meeting, marking the third consecutive rate cut.to the lowest since 2016. Policymakers cited the sustained disinflationary trend and an improving economic outlook, despite uncertainty stemming from the conflict in the Middle East. The annual inflation rate fell to 8.78% in August 2026 from 9.33% in July, marking the lowest since April 2015 and extending the downward trend observed since mid-2024. Looking ahead, Governor Manuel Tiago Dias said that inflation is still expected to end the year at 8.6%. Meanwhile, economic growth accelerated sharply to 8.74% year-on-year in Q2 2026, marking its strongest expansion since Q2 2022, up from 5.32% in Q1.

The National Bank of Angola cut its key interest rate by 125 basis points to 15.75% at its July 2026 meeting, marking the second rate cut in 2026 and citing easing inflation and an improving economic outlook. Annual inflation slowed to 10.11% in June from 10.88% in May, with Governor Manuel Tiago Dias saying price pressures are expected to continue easing despite uncertainties stemming from the conflict in the Middle East. Meanwhile, the economy grew 5.3% year-on-year in the first quarter, accelerating from 5.1% in the previous quarter. Growth was driven by the non-oil sector, which expanded 6.2%, while the oil sector contracted 0.2%. Looking ahead, the central bank lowered its year-end inflation forecast to 8.6% from 11.5% and raised its 2026 growth forecast to 3.6% from 3.5%, supported by growth on non-oil sectors and benefiting from elevated global energy prices as an oil exporter.

The National Bank of Angola cut its key interest rate by 50 bps to 17% during its May 2026 meeting, following a pause in March. The decision was driven by the recent benign inflation trajectory and expectations of subdued inflationary pressures in the near term, alongside the need to support economic activity amid heightened global uncertainty linked to the ongoing Middle East conflict. Inflation fell to 11.58% in April from 12.42% in March, its lowest level since June 2023, extending the disinflation trend observed since mid-2024. Against this backdrop, the Monetary Policy Committee (MPC) lowered its 2026 inflation forecast to 11.5% while maintaining its GDP growth projection at 3.5%.