Angola’s central bank, Banco Nacional de Angola, slashed its benchmark interest rate by 125 basis points to 15.75% on Friday, marking the most aggressive easing move since 2023.
The decision comes as annual inflation fell to 10.11%, an 11-year low that has provided policymakers with the fiscal space to pivot from tightening to growth support.
The rate cut represents a significant shift in monetary stance for the West African nation.
By lowering borrowing costs, the central bank aims to stimulate credit expansion and economic activity in an economy heavily reliant on oil revenues.
The move suggests that the bank views the current inflation trajectory as sustainable, allowing for a focus on stimulating domestic demand without immediately reigniting price pressures.
This easing cycle stands in stark contrast to the tightening measures seen elsewhere in emerging markets.