Angola raises rate 50 bps as monetary conditions worsen

    Angola's central bank raised its Basic Interest Rate (BNA) by 50 basis points to 11.0 percent, citing "a worsening of monetary conditions in the economy."
    The National Bank of Angola (BNA), which has now raised its rate by 200 basis points this year, also raised the rate on its permanent lending facility by 50 basis points to 13.0 percent while it cut the rate on its overnight liquidity absorption facility to zero percent from 1.75 percent and established a permanent facility for the absorption of seven-day paper with a rate of 1.75 percent.
    Angola's inflation rate rose to a year-high of 13.29 percent in November from 12.4 percent from 12.4 percent in October as the prices of food and alcohol rose by 0.64 percent on the month, the largest contributor to inflation.
     The central bank, whose monetary policy committee met on Dec. 21, added that credit to the economy grew by a cumulative 13.05 percent in the first 11 months of the year while commercial banks purchased foreign currency worth US$ 1,246 billion in the foreign exchange market, of which $1.048 billion from the BNA.
    The kwanza, which has been stable since September, was trading at 135.25 to the U.S. dollar today, down 24 percent this year. In June the BNA devalued the kwanza by 6 percent and then tightened dollar liquidity in September.
   Angola is Africa's second largest crude oil exporter and relies on oil exports for almost all its foreign exchange earnings.
   
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