Angola holds rate steady as inflation continues to drop

    Angola's central bank held its policy rate steady at 9.75 percent, citing a drop in September's inflation rate, an increase in credit to the economy and depreciation in the kwanza's exchange rate.
    The National Bank of Angola (BNA) has cut its policy rate twice this year by a total of 50 basis points as inflation has continued to decline.
    In September Angola's inflation rate eased to 8.93 percent from 8.97 percent and last week the BNA's deputy governor said he was convinced the country would meet the goal of inflation at 9 percent at the end of the year.
    The BNA''s goal for many years was to get inflation below 10 percent and this was achieved in August last year and inflation has continued to decline slowly since then.
    In its statement, the BNA said the interest rates on credit in local currency fell in September to an average of 14.09 percent from 14.95 percent the previous month while credit extended has risen by 5.7 percent since the beginning of the year to an outstanding stock of 2.816 trillion kwanza.

    The LUIBOR overnight rate also continued to fall to 5.52 percent, the BNA said.
    The kwanza's average exchange rate against the U.S. dollar was 97.39 at the end of last month, a depreciation of 1.54 percent from the end of August.

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