News

January 31, 2017

Monetary Policy Committee

The Monetary Policy Committee of the National Bank of Angola (MPC) met on 30 of January of 2017, in its sixty-third ordinary session.


The MPC analyzed the evolution of the indicators in relation to the national economy, in particular, with respect to Real, Fiscal, Monetary and External sectors, as well as the behavior of the international economy. Specific consideration was given to the trajectory of prices in the national economy, while the MPC observed in December a slight increase of the monthly inflation rate compared to the previous month, this situation was explained by the seasonal effect that characterizes the last month of the year.


I. DEVELOPMENT OF THE NATIONAL MONETARY AND FINANCIAL ECONOMICS

In the month of December of 2016, the monthly inflation rate measured by the Consumer Price Index of the Province of Luanda, published by the National Institute Nacional of Statistics was 2.17 percent, against 2.13 percent in the previous month. The inflation of the last twelve months stood at 41.95 percent.

  • The Classes “Alcoholic Beverages and Tobacco”, “Home, Recreation and Culture” and “Miscellaneous Goods and Services” were those that registered greatest variation of prices. In the meantime, the Classes “Food and Non-Alcoholic Beverage”, “Miscellaneous Goods and Services” and “Clothing and Footwear” were the ones that had most contributed to the inflation registered in the reporting period;
  • Among the other provinces, object of official collection of the general level of prices, by the National Institute of Statistics, the province of Moxico registered the highest monthly inflation rate, 2.23 percent, while the province of Bié was the one that registered the lowest rate, 1.60 percent;
  • In the same period, the Overnight LUIBOR went from 22.65 percent to 23.35 percent, per year, and in the maturities of 3 and 12 months the rates stood at 18.23 percent and 20.17 percent, per year, respectively;
  • According to preliminary data, in the month of December of 2016, the credit to the economy increased 1.62 percent. On the other hand, the gross credit to the Central Government (titrated and non-titrated) decreased 2.68 percent, while the Government deposits in the banking system grew by 14.52 percent;
  • The Restricted Monetary Base in NM contracted by 2.82 percent in the month. The means of payment represented by the aggregate M2 contracted by 0.15 percent in December of 2016 and grew by 13.03 percent in the last 12 months;
  • In the month of December, the commercial banks acquired foreign exchange in the amount of USD 1.947 million in the exchange market, of which USD 1.486 million to the BNA and the remainder to its customers, which compared to the previous month, represented an increase of 49.31 percent;
  • In the primary Exchange Market, the average Exchange rate of Kwanza compared to the US Dollar remained unchanged and stood at Kz 165.90.


II.  DECISIONS OF THE MONETARY POLICY COMMITTEE 


Following the analysis performed to the evolution of the key macroeconomic indicators, having observed a tendency of contraction of the monetary indicators and that the slight increase of the monthly inflation, compared to the previous period, it was due to the seasonal period characteristic of the end of the year, the Monetary Policy Committee (MPC) has decided to:

  • Maintain the Basic Interest Rate – BNA’s Rate – at 16.00% per year;
  • Maintain the Interest Rate of the Marginal Lending Facility at 20.00% per year;
  • Maintain the Interest Rate of Liquidity-absorbing at seven days at 7.25% per year.

The next meeting of the Monetary Policy Committee will take place on Monday, 27 of February of 2017.