The governor of the National Bank of Angola (BNA, José de Lima Massano, admitted the possibility of cutting interest rates due to the deceleration of inflation for consecutive months observed, this year, in the national economy, to enable the drafting of prices of goods on the market The official was speaking at a meeting held, in Luanda, on Friday, with the main food importers and distributors.
Speaking about the prospects for adapting monetary policy to the good moment of inflation, the governor declared, quoted yesterday, on the BNA electronic portal, that “the consistency of the disinflation process creates conditions for the revision of the key interest rates”.
The only threat, he continued, lies in the “prevalence of an external context still of great uncertainty” of an international context characterized by the military conflict in Eastern Europe, adverse weather conditions, as well as the Covid-19 pandemic, with an impact on prices. of energy and food raw materials “which have been rising sharply, generating strong inflationary pressures in most world economies”.
According to the BNA website, the governor indicated that, on the contrary, the national economic situation is defined by the deceleration of inflation since the beginning of 2022, the stabilization of the foreign exchange market, marked by the appreciation of the Kwanza against the currencies of the main partners. commercial activities in Angola and an increase in the supply of essential consumer goods
The note in which these statements are released attributes to food importers and distributors the “recognition” of the evolution of the main macroeconomic indicators and the manifestation of “more positive and confident signs about the future”.
This includes the admission, by companies, that there are “conditions created to ensure the same sense of supply of goods in the last four months of the year”, in an indication of the market’s expectation regarding a cut in prices symmetrical with the evolution of inflation.
But, the document adds, business representatives who participated in the meeting raised the question of the persistence of “relevant concerns, including the costs associated with credit to the commerce sector”, as obstacles to price competitiveness.
At the end of the meeting, the executive director of BNA Pedro Castro e Silva announced the forecast for inflation to end the year below 18 percent, in what can be considered the most consistent clues about the BNA’s expectations regarding the expected evolution of prices.
“We have good news: for the first time, the inflation rate is below 20 percent. This is the result of several factors that indicate that if the economy remains stable, inflation will continue to fall and should be even lower than the 18 percent forecast”, said Pedro Castro e Silva.
He recalled that, in the last eight months, the country spent two billion dollars on importing foodstuffs, an increase of almost 50 percent compared to purchases of the same nature in the same period in 2021. supply and contributes to maintaining prices.
Held periodically, meetings between the central bank and representatives of the business sector allow the BNA to listen to the market, share information on the world economy, obtain concerns from operators and exchange experiences.