The Banco Naconal de Angola (BNA) has announced plans to introduce a new benchmark interest rate in October this year. The BNA had previously formed a new monetary policy committee in August, and the committee will meet monthly to set the new rate; much in line with global practices. The BNA also plans to introduce a Luanda Interbank Offered Rate (Luibor) according to Bloomberg. Central bank governor, Jose de Lima Massano, said the efforts will “preserve the value of the national currency and the stability of prices in the economy”.
Previous monetary policy moves from the BNA include a 500 basis point cut to the required reserve ratio (from 25% to 20%), and a 500 basis point cut to the rediscount rate (also from 25% down to 20%) earlier this year. Angola reported annual inflation of 13.7% in August, compared to 14.1% in July. According to IMF data Angola’s economy grew 7.06% in 2010 and recorded annual average inflation of 15.04% and full year inflation of 13% last year. Angola reported exports of US$52 billion in 2010, driven by oil earnings as Angola is Africa’s second largest oil producer. Angola recently had its sovereign credit rating upgraded to BB- by Standard & Poor’s.