(Updates with governor’s comments in second paragraph.)
Sept. 29 (Bloomberg) -- The central bank of Angola, sub- Saharan Africa’s second-biggest oil producer, plans to introduce a benchmark interest rate in October, central bank Governor Jose de Lima Massano said.
A monetary policy committee, formed in August, will meet monthly to decide on the level of the rate, Massano told reporters in the capital, Luanda, today. Commercial banks have previously used domestic-bond yields and other financial instruments to set lending rates, he said. Massano didn’t give a date for the first meeting.
The committee will help to “preserve the value of the national currency and the stability of prices in the economy,” he said.
The southern African nation is improving financial management after securing a loan from the International Monetary Fund in 2009. Standard & Poor’s raised its credit rating for Angola by one level to BB- on July 12. The central bank, known as the Banco Nacional de Angola, will probably expand 6.3 percent in 2011 after a recovery in oil prices. Inflation slowed to 13.7 percent in August from 14.1 percent a month earlier, the statistics agency said Sept. 13.
The central bank also plans to introduce a Luanda Interbank Offered Rate, or Luibor, to make the market “more dynamic,” Pedro Castro e Silva, director of economic studies at the central bank, said in an interview.
--Editors: Gordon Bell, Nasreen Seria
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