Angola Leaves Key Rate on Hold; Changes Lending and Absorption Facility Rates

At its March 31st, 2014 meeting, central bank of Angola decided to leave the benchmark interest rate on hold at 9.25 percent, but raised the liquidity absorption rate by 25 bps to 1.5 percent and cut the standing lending facility rate by 25 bps to 10 percent.

The central bank rose the liquidity absorption rate for the second straight meeting. Last month, it increased the rate by 50 bps, but kept the lending facility rate unchanged. 

Today’s moves aim to reduce the cost of financial intermediation, mainly the interest rates charged on credit to the economy. 

In February, the LUIBOR Overnight was recorded at 3.57 percent, lower than 4.15 percent in January, while maturities of 3 and 12 months were 7.45 percent and 9.44 percent, respectively.

Joana Taborda |
3/31/2014 6:04:03 PM