Luanda — Angola’s central bank kept its main interest rate at 19.5% on Friday, citing a potential slowdown in inflation and an improvement in the supply of essential goods in the near term.
The Bank of Angola had raised its main rate by 50 basis points at its last monetary policy meeting in May after hiking it by 100 basis points in March as it tried to rein in rising inflation which has topped 30%.
Last month the annual inflation rate rose to 31.00%, from 30.16% in May, but the pace of increase was slower than in previous months.
“The decision (on Friday) was motivated by the prospect of a slowdown in the rate of price growth and an improvement in the supply of essential goods,” said central bank Governor Manuel Tiago Dias.
“If current conditions prevail from August onwards, we predict a slowdown in year-on-year inflation,” Tiago Dias added.
Inflation in the African oil-producing country has been rising since the middle of last year.
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The central bank’s next monetary policy decision will be in September.
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*Miguel Gomes; Tannur Anders & Bhargav Acharya; editing: Bate Felix, Philippa Fletcher & Susan Fenton – Reuters
