Bloomberg News

Angola Leaves Key Interest Rate Unchanged as Inflation Slows

November 30, 2011

(Adds kwanza exchange rate in last paragraph.)

Nov. 29 (Bloomberg) -- Angola’s central bank left its benchmark interest rate unchanged at 10.5 percent after inflation slowed as inflation slowed.

The inflation rate fell to 11.4 percent in October from 11.9 percent in the previous month, the statistics office said on Nov. 14. Angola is targeting inflation of below 12 percent by the end of the year.

‘Inflation has been falling,’’ the Luanda-based Banco Nacional de Angola said in an e-mailed statement yesterday. “We can attain the planned target.”

The Monetary Policy Committee was formed in August amid the country’s attempts to improve financial management after it secured a loan from the International Monetary Fund in 2009. Commercial banks previously used domestic-bond yields and other financial instruments to determine lending costs for clients. The benchmark rate was set at 10.5 percent in the committee’s first decision announced Oct. 28.

The central bank cut its overnight Luanda interbank offered rate, or Luibor, to 6.43 percent on Nov. 25 from 6.5 percent. The rate for 30-day borrowings was increased to 8.1 percent from 8.08 percent, the Luanda-based bank said on its website without giving reasons.

The kwanza has weakened 2.7 percent against the dollar this year and traded at 95.1650 as of 8:22 a.m. Luanda time. The central bank sells dollars in three foreign-currency auctions a week.

--Editors: Emily Bowers, Eddie Buckle, Antony Sguazzin

To contact the reporters on this story: Candido Mendes in Luanda at cmendes6@bloomberg.net; Colin McClelland in Toronto at cmcclelland1@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net


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