Angola’s central bank governor sees more room to cut interest rates

Angola’s central bank has room to lower interest rates to spur investment as inflation eases in Africa’s second largest oil producer, Governor Jose de Lima Massano said.

Policy makers have kept the benchmark interest rate unchanged at 9.25% since lowering it by half a percentage point in November. Inflation slowed to 7.32% in March from 7.48% in the previous month.

“There is room for interest rates to come down but we want to make sure we’re not putting unnecessary pressure on prices,” Massano, 44, said in an interview on Tuesday in his office in the capital, Luanda. “Stable inflation creates conditions for more credit to the economy at lower costs.”

Angola is stabilising its economy to help spur investment and reduce its reliance on oil, which accounts for about 45% of gross domestic product and 80% of government tax revenue.

Banco Nacional de Angola has achieved this year’s inflation target of 7% to 9%, Massano said.

“If inflation keeps falling it’s expected that the central bank can decide to lower interest rates,” he said. “If we feel there’s room we’ll do it.”

The government expects the $122-billion economy, sub- Saharan Africa’s third largest after Nigeria and South Africa, to grow between 5% and 7% this year, boosted by a 9% expansion of non-oil industries, the governor said. – Bloomberg

We make it make sense

If this story helped you navigate your world, subscribe to the M&G today for just R30 for the first three months

Subscribers get access to all our best journalism, subscriber-only newsletters, events and a weekly cryptic crossword.”

Related stories

WELCOME TO YOUR M&G

Already a subscriber? Sign in here

Advertising

Latest stories

Why is turning the tide on SA unemployment so tough?

South Africa’s jobless rate is one of the highest in the world — and bringing it down significantly could take years

Iran ‘categorically’ denies link with Rushdie’s attacker

Rushdie, 75, was left on a ventilator with multiple stab wounds after he was attacked at a literary event Friday in western New York state

Defence minister Thandi Modise in Moscow for security conference

Discussions about Russia’s invasion of Ukraine are absent from the official programme

Ugandan student develops mosquito repellant from sour milk

The death of Jovia Kisaakye’s brother from malaria and the family’s struggle to sell fresh milk led to the new product
Advertising

press releases

Loading latest Press Releases…
×