In a move aimed at stimulating economic growth, Angola's central bank has reduced its benchmark interest rate from 19.50% to 19.00% as of September 16, 2025. This 50-basis point cut marks a significant shift as the nation navigates its economic recovery amidst global financial uncertainties.
The decision to lower the interest rate is seen as an effort by policymakers to boost economic activity by making borrowing more attractive and encouraging investment. The reduction signifies the first rate change since the previous indicator stabilised at 19.50%, reflecting a calculated step in adjusting to the month-over-month economic comparison, which evaluates changes between subsequent months.
The Angolan economy, influenced by global trends and domestic factors, continues to face challenges, including inflationary pressures and fluctuating commodity prices. By adjusting the interest rate, the central bank demonstrates a proactive approach to managing monetary conditions, aiming to foster a more conducive environment for economic expansion and stability. Stakeholders will be closely watching the impacts of this decision on the nation's financial markets and overall economic health in the months to come.
