Angola's central bank raised its Basic Interest Rate (BNA) by a further 100 basis points to 12.0 percent, citing accelerating inflation and a faster issuance of credit by banks.
The National Bank of Angola (BNA) has now raised its rate by 325 basis points since starting its tightening cycle in October 2014, including 200 points in 2015.
The BNA also raised the rate on its standing facility for providing liquidity to 14.0 percent from 110 percent but left the rate on liquidity absorption rate unchanged at 1.75 percent.
The BNA's monetary policy committee was originally scheduled to meet on Jan. 25 but rescheduled the meeting and said today that the committee had discussed developments in 2015 and the prospects for 2016, including the global economic slowdown, the poor performance of international commodities, with particular attention to the trend of national prices.
Angola's inflation rate accelerated to a 2015-high of 14.27 percent in December from 13.29 percent November, with food and non-alcoholic beverages contributing by 0.67 percentage points to the monthly rise, the largest contributor to inflation.
Inflation is likely to have risen further in January as the government cut subsidies on petrol on Jan. 1, pushing up prices sharply.
Credit issued to the economy also rose by a cumulative 17.50 percent in December since the start of the year, up from an increase of 13.05 percent in the first 11 months of the year.
Angola is Africa's second largest crude oil producer and relies on oil exports for almost all of its foreign exchange earnings.
The exchange rate of the kwanza has been hit hard by the fall in global oil prices and the BNA has devalued the kwanza several times.
In 2015 the kwanza lost 24 percent and today it was trading at 155.6 to the U.S. dollar for a depreciation of 15 percent this year alone and 34 percent since the start of 2015.
