Angola's Central Bank Cuts Interest Rate to 14.75%

The National Bank of Angola has reduced its key interest rate by 100 basis points to 14.75%, marking the third consecutive cut as inflation dropped to 8.78% year-on-year in August 2026, the lowest since April 2015. This reduction follows a 125 basis point cut in July and a 50 basis point cut in May, totaling a 275 basis point decrease in 2026.

The central bank maintained its year-end inflation forecast at 8.6%, indicating expectations for continued easing of price pressures despite uncertainties from the Middle East conflict. The bank also raised its economic growth forecast for 2026 to 6.15% from 3.6%, citing stronger performance in both oil and non-oil sectors.

Official data indicated an 8.74% year-on-year economic expansion in the second quarter of 2026. Manuel Tiago Dias, governor of the National Bank of Angola, noted that the easing inflation environment allows for reduced borrowing costs to support economic activity, while external risks remain a concern.