FX.co ★ Angola Slashes Key Policy Rate to 18.5%

The National Bank of Angola has reduced its key interest rate by 50 basis points to 18.5% during its meeting in November 2025, marking the second successive reduction this year. This move aligns with the improving macroeconomic landscape, primarily evidenced by decreasing inflation and monetary indicators that suggest reduced short-term inflationary pressures. Angola's annual inflation rate fell to 17.43% in October 2025, marking its lowest point since October 2023, and continuing a downward trajectory that commenced in August 2024. Policymakers anticipate that inflation will continue to slow towards the end of the year, aided by sufficient liquidity, increased availability of essential goods, and relative stability in the exchange rate. For 2025, the inflation rate is forecasted at 17.0%, with a variance of ±0.5 percentage points, with preliminary projections for 2026 suggesting a further decline to 13.5%. Additionally, the lending facility rate has been reduced from 20% to 19.5%, and the absorption facility rate has been decreased from 17% to 16.5%.