off-the-wire

Angola cuts main interest rate again to 17% after inflation dips

Kitco Media
By Reuters
Published:
Updated:
Reuters

LUANDA, March 21 (Reuters) - Angola's central bank cut its main interest rate (AOINTR=ECI) for a second time this year on Tuesday, lowering it by 100 basis points to 17% after inflation fell to a multi-year low.

The Southern African country's inflation rate (AOCPIY=ECI) eased in February to 11.54% year on year from 12.55% in January, continuing a downward trend since the start of 2022.

Inflation is now at its lowest since 2015, central bank governor Jose Massano told a news conference. He said he expected Angola to end this year with inflation of 9%-11%.

"With this inflation it doesn't make sense to keep highly conservative interest rates," Massano said.

The bank will maintain a prudent approach and keep a close eye on the context to see if further cuts are needed, he added.

In contrast to a global trend of monetary policy tightening, the Bank of Angola started to lower interest rates late last year. It last cut its main rate on Jan. 20 to 18% from 19.5%.

Reporting by Miguel Gomes; Writing by Nellie Peyton; Editing by James Macharia Chege
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