Angola becomes first central bank to cut rates in 2023

Angola’s central bank has cut its main interest rate to 18.0% from 19.5%, its governor José Massano said on Friday, adding that the country recorded its lowest inflation rate in five years in December.

Massano said the National Bank of Angola (BNA) decided to cut the interest rate by 150 basis points after inflation last month came in below the central bank’s forecast.

The Southern African country’s inflation rate eased in December to 13.86% year on year from 15.24% in November.

The central bank governor said he expected Angola to end this year with inflation of 9%-11%. He also predicted 3.3% growth in gross domestic product for 2023.

The Bank of Angola last cut its benchmark interest rate on Sept. 26, when it lowered it to 19.5% from 20.0%, where it had been since July 2021.