Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By CentralBankNews.info (Reporter)
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Angola hikes rate in surprise move due to high inflation

% of readers think this story is Fact. Add your two cents.


     Angola added its name to the growing number of central banks that are raising interest rates in response to a faster-than-expected rise in inflation by hiking its key interest rate by a sharp 450 basis points in its third move this year to tighten its monetary policy stance.
     The Bank of Angola (BNA), one of the few central banks that kept interest rates steady last year as the COVID-19 pandemic swept the globe,  raised its basic interest rate by 450 basis points to 20.0 percent, its first rate hike since November 2017.
    BNA also raised its Standing Liquidity Lending Facility rate to 25.0 percent from 19.88 percent and the rate on its 7-day Permanent Liquidity Absorption facility to 15 percent from 12 percent.
    The central bank’s move today came as a surprise because the monetary policy committee meeting was brought forward from the initially scheduled date of July 29 in light of what it said was the evolution of inflation, which made a more immediate assessment of the situation “essential” in order to assess the need to take corrective measures.
     Angola becomes the 18th central bank to raise its interest rates this year to curb growing inflationary pressures, easily outpacing the 7 central banks that have cut rates in an effort to stimulate economic activity that is still being impacted by the pandemic.
     Angola’s inflation rate has hovered between 23 and 25 percent since July last year and in March the central bank raised the rate on its liquidity absorption facility due to the persistent inflationary pressures.
     This move came after BNA after in January said there was an “evident” need for a more restrictive monetary policy to ensure inflation would decline to its target in 2022.
     Today BNA said the rate hike aimed at reversing the trajectory of inflation to reach the target of 19.5 percent inflation by the end of 2021, reduce distortions in the monetary policy corridor and place the key rate in an intermediary level between the lending and liquidity absorption facilities, improve monetary conditions for more efficient intermediation, stimulate savings and exchange rate stability.
      At its previous policy meeting in May, BNA’s monetary policy committee revised upwards its inflation target for this year to 19.5 percent from an earlier target of 18.7 percent. 
    BNA said central banks in emerging countries had already started the process of moving their monetary policy stance to a more restrictive one, anticipating the action of central banks in developed countries and thus help absorb any possible shocks.
    “At a national level, inflationary pressures persist and have proved to be greater than expected, despite measures taken in the first quarter of this year to minimize the shock,” BNA said.
     In May Angola’s inflation rate was 24.94 percent, up from 24.82 percent in April and BNA said data for the first half of June point to continued unfavorable price developments.
     It added the trajectory of core inflation, which excludes administered and volatile prices, is incompatible with the inflation objective, both in the short, medium and long term.
     In addition, the slow speed in normalizing food supply against the inelasticity of demand, points to continued high levels of inflation, despite a stable exchange rate, and this is putting at risk the inflation objective for this year.
       
    
    


Source: http://www.centralbanknews.info/2021/07/angola-hikes-rate-in-surprise-move-due.html



Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.


LION'S MANE PRODUCT


Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules


Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.



Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.


Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.