Angola Raises Liquidity Absorption Facility

At its May 26th, 2014 meeting, Angola’s central bank kept its key policy rate unchanged at 9.25 percent, but raised its liquidity absorption facility rate by 25 bps to 1.75 percent.

It was the third time this year the central bank raised its liquidity absorption facility rate, aiming to increase resources available for lending.

In April, credit to the economy rose 2.25 percent while the LUIBOR overnight decreased to 3.10 percent. The average exchange rate was stable at 97.88 kwanzas per dollar.

Later in April, the central bank Governor said there is room to reduce interest rates if consumer prices keep decelerating. In April, the inflation rate slowed to 7.22 percent from 7.32 percent in March, the lowest rate on record.

Joana Taborda |
5/27/2014 2:47:58 PM