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Angola Maintains Key Interest Rate at 19.5% and Adjusts Reserve Requirements

The National Bank of Angola held the key interest rate at 19.5% for ten months while lowering the liquidity absorption rate and reserve requirements to enhance economic growth and liquidity. GDP is expected to grow at 4.4% in 2024, and inflation is anticipated to decline to 17.5% in 2025.

The National Bank of Angola has decided to maintain its key interest rate at 19.5% during the March 2025 meeting, continuing a consistent rate for ten months. This figure represents the highest borrowing cost since December 2022. In a strategic move to enhance liquidity, the central bank has reduced the liquidity absorption rate by 100 basis points to 17.5% and the reserve requirement ratio for commercial banks by the same margin to 20%.

These adjustments aim to bolster liquidity within the Angolan financial system, facilitating economic growth that is projected to remain above the target of 3%. For 2024, GDP growth is anticipated at 4.4%, exceeding the 3.61% growth rate in the oil sector. Furthermore, inflation is expected to decrease to 17.5% in 2025, down from a projected 27.5% by the end of 2024.

The National Bank of Angola’s decision to maintain the key interest rate at 19.5% while lowering reserve requirements is designed to enhance liquidity and stimulate economic growth. With GDP growth projected at 4.4% and inflation expected to decline, these measures reflect the central bank’s commitment to fostering stability in the financial system and the broader economy.

Original Source: www.tradingview.com

Samir Khan

Samir Khan is a well-respected journalist with 18 years of experience in feature writing and political analysis. After graduating from the London School of Economics, he began his career covering issues related to governance and societal challenges, both in his home country and abroad. Samir is recognized for his investigative prowess and his ability to weave intricate narratives that shed light on complex political landscapes.

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