Luanda — The downward trend in inflation and its projected evolution in the short and medium terms were the key factors behind the reduction of the Central Bank of Angola (BNA)'s benchmark interest rate from 15.75% to 14.75%, the institution's governor, Manuel Tiago Dias, made the announcement on Tuesday (15), in Luanda.
The BNA head was speaking at a press conference following the Monetary Policy Committee (MPC) meeting held on the 14th and 15th of the current month, having informed that the interest rate for the Standing Liquidity Provision Facility was also lowered from 16.75% to 15.75%.
He said that for the same reasons, the Central Bank also decided to lower the interest rate on the Standing Liquidity Absorption Facility from 14.75% to 13.75% and to reduce the reserve requirement ratio for local currency from 17.5% to 16.5%.
Regarding the national economy, the BNA states that based on data released by the National Statistics Institute (INE), Gross Domestic Product (GDP) recorded year-on-year growth of 8.74% in the second quarter of 2026. This performance was driven by the dynamics of the non-oil sector which grew by 9.24% and the recovery of the oil sector, which posted a growth rate of 5.64%.
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During the period under review, the monthly inflation rate stood at 0.59% in August 2026, which reflects a slowdown compared to the rate observed in the previous month (0.75%).
The annual inflation rate stood at 8.78% and maintains its downward trajectory as inflation has slowed across the country, most notably in the provinces of Cuanza-Norte (5.22%), Huambo (5.85%), Cunene (6.69%), and Lunda-Norte (6.71%).
According to the data, Cabinda Province which recorded the highest inflation level, saw a significant slowdown, dropping from 29.58% in August 2025 to 11.53% in August 2026.
Regarding the goods and services categories of the National Consumer Price Index (IPCN), all recorded single-digit variations, with the exception of the Education category, which showed a variation of 19.33%.
In light of this result, the Monetary Policy Committee has expressed concern regarding the frequency and magnitude of price adjustments for education services.
In the monetary sphere, the domestic currency base expanded to 6.84% in August, following a 2.50% contraction observed in July of this year. As a result, the accumulated and 12-month variations stood at 8.24% and 18.68%, respectively.
Meanwhile, the monetary aggregate in national currency recorded a 0.62% increase in August, thus bringing the accumulated variation to 16.69% and the previous one to 23.88%.
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The CPM met, aiming to assess recent developments in the national and international economies, macroeconomic outlooks and risks to price stability.
The next meeting is expected to take place in the city of Saurimo, Lunda-Sul Province, on November 16 and 17 of this year.
