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Angola will cut interest rates as long as inflation is low, governor of Angola’s central bank says

Jorgelina do Rosario and Rachel Savage

WASHINGTON/JOHANNESBURG (Reuters) – Angola will continue to cut interest rates as long as inflation remains low, the governor of the central bank of Angola, Jose De Lima Massano, said. On Wednesday, inflation was forecast to fall to 19% this year, 9-19 % by the end of the year 2023.

“Today our rate in Angola is higher than 50 ”

with the big Unlike most other central banks, Angola has started to cut interest rates for the first time since 2019 to

September basis points to 10.5%.

This is the domestic inflation rate since the beginning of the year in the context of easing, from 10 in January. 7% fell below19% August, and one more kwanza stronger, so far, kwanza against USD2022 Having gained 27%, the US dollar is one of the best performing currencies in the world.

“Our currencies have found a balance and we do not expect a significant appreciation or depreciation,” De Lima Massano said.

“If we notice that it is time to intervene and reduce volatility levels, we will do so. That doesn’t mean the currency won’t appreciate or depreciate, we just don’t want to see either direction big move.”

Foreign reserves are currently in the import range for seven months, De Lima Massano said, calling it the “right level”, while he said this year’s GDP growth Maybe 3%.

Angola’s President João Lourenco won a second term as president in August, extending the ruling party’s nearly five-year uninterrupted rule in Africa’s second-largest oil producer.

Lorenco 19 has pledged to continue reforms favored by foreign investors, including the privatization of distressed state assets, and Clean up corruption after investigating members of the former ruling dos Santos family.

Angola continues to receive technical support from the International Monetary Fund and the World Bank, de Limasano said, adding that it may not be necessary to apply for an international monetary The IMF’s surveillance program or the fund’s new “Food Shock k Window” emergency financing.

The country signed a three-year, $3.7 billion deal with the Washington-based lender Loan Program, which ends with 50.



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