Angola Makes Third Rate Cut as Inflation Continues Decline

Angola’s central bank has reduced its key policy rate by 100 basis points to 14.75%, its third consecutive rate cut, as inflation continues to decline. The Banco Nacional de Angola previously lowered the rate by 125 basis points in July and 50 basis points in May. Annual inflation fell to 8.78% in August from 9.33% in July, returning to single digits for the first time in over a decade. The bank held its year-end inflation forecast at 8.6% but sharply raised its 2026 growth projection to 6.15%, up from 3.6% in July, citing stronger performance in both the oil and non-oil sectors. Angola’s economy has benefited from high global energy prices tied to the Iran war. The International Monetary Fund has encouraged Angola to use the increased oil revenues to reduce debt and strengthen fiscal buffers.