The National Bank of Angola held the key interest rate at 19.5% for March 2025 and reduced the liquidity absorption rate and reserve requirement ratio by 100 basis points each. These measures are intended to improve financial liquidity in the country, with a GDP growth forecast of 4.4% for 2024 and inflation projected at 17.5% by 2025.
In March 2025, the National Bank of Angola decided to maintain its key interest rate at 19.5%, a level it has sustained for ten consecutive months, marking the highest borrowing costs since December 2022. Furthermore, the central bank implemented a reduction in the liquidity absorption rate by 100 basis points to 17.5%. In addition to this, the reserve requirement ratio for commercial banks was also lowered by 100 basis points to 20%.
These strategic measures are designed to enhance liquidity within the Angolan financial system, thereby promoting economic growth that is projected to exceed the target of 3%. The GDP growth forecast for 2024 stands at 4.4%, outstripping the 3.61% anticipated growth in the oil sector. Inflation is also expected to decrease, anticipated to reach 17.5% by 2025 after closing 2024 at 27.5%.
The National Bank of Angola’s strategies of maintaining high interest rates, coupled with reduced reserve requirements, aim to stimulate liquidity in the financial system and ensure robust economic growth. With a projected GDP growth of 4.4% and a decline in inflation rates, these measures indicate a proactive approach towards stabilizing the economy and enhancing financial conditions in Angola.
Original Source: www.tradingview.com
