The National Bank of Angola held its key interest rate at 19.5% for March 2025, while lowering the liquidity absorption rate and reserve requirement ratio. These measures aim to increase liquidity for sustained economic growth, with a projected GDP growth of 4.4% and a forecasted decline in inflation to 17.5% by 2025.
In March 2025, the National Bank of Angola decided to maintain its key interest rate at 19.5%, a figure it has upheld for ten consecutive months, which is the highest rate since December 2022. In addition, the central bank has reduced the liquidity absorption rate by 100 basis points to 17.5%, along with a cut in the reserve requirement ratio for commercial banks by the same margin to 20%.
These adjustments are strategically implemented to enhance liquidity within the Angolan financial system, ensuring that economic growth remains above the target of 3%. Economic projections for 2024 indicate a GDP growth of 4.4%, surpassing the 3.61% growth anticipated in the oil sector. Furthermore, inflation rates are expected to decrease to 17.5% in 2025, following an estimated closure at 27.5% for 2024.
The National Bank of Angola continues to maintain a stable interest rate while implementing liquidity-enhancing measures. These actions are designed to foster economic growth and manage inflation. With positive GDP growth projections and a decrease in inflation rates anticipated, Angola is positioning itself for potential financial resilience and stability in the coming years.
Original Source: www.tradingview.com
