Angola’s central bank monetary policy committee cut its benchmark interest rate to 19.5% from 20%, for the first time since 2019.
Governor Jose de Lima Massano says a slowdown in Angola’s inflation since the start of the year and the appreciation of the kwanza against major overseas currencies were among the main reasons for the cut.
Price growth in the country dropped below 20% for the first time in more than two years in August, and the central bank forecasts it will slow to less than 18% by the end of the year.
Cooling prices have been aided by the kwanza’s gain against the dollar. It has strengthened almost 30% this year, making it one of the world’s best-performing currencies.
The International Monetary Fund forecasts the economy to expand 3% in 2022, after exiting a five year recession last year.