Angola Maintains Key Rate at 19.5% While Adjusting Reserve Requirements

The National Bank of Angola has kept its key interest rate at 19.5% while reducing bank reserve requirements and liquidity absorption rates to stimulate economic growth, expecting GDP growth of 4.4% for 2024 and a decline in inflation to 17.5% in 2025.

The National Bank of Angola has maintained its key interest rate at 19.5% during its March 2025 meeting, signifying ten months of stability in borrowing costs, the highest level since December 2022. Concurrently, the central bank has reduced the liquidity absorption rate and reserve requirement ratio for commercial banks by 100 basis points, lowering them to 17.5% and 20%, respectively.

These actions are aimed at enhancing liquidity within the Angolan financial sector, encouraging growth above the target rate of 3%. The GDP for 2024 is projected to rise by 4.4%, surpassing the oil sector’s anticipated growth of 3.61%. Furthermore, it is expected that inflation will decrease to 17.5% in 2025, following a projected end-of-year rate of 27.5% for 2024.

In summary, the National Bank of Angola’s decision to keep the key interest rate unchanged while lowering liquidity absorption and reserve requirements underscores its commitment to fostering economic growth and improving financial liquidity. With GDP growth projections exceeding oil sector figures and anticipated reductions in inflation, these measures reflect a strategic approach to enhance the country’s economic stability.

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