The National Bank of Angola (BNA) announced today a downward revision of its inflation target for 2026, lowering the goal from 13.5% to 11.5%. Governor Manuel Tiago Dias shared the update following the 129th Ordinary Meeting of the Monetary Policy Committee, citing a steady decline in consumer prices.
While the inflation outlook has improved, the central bank maintained its previous forecast for Gross Domestic Product (GDP) growth, which remains steady at 3.5%. The governor highlighted that year-on-year inflation reached 11.58% in April, a notable drop from the 12.42% recorded in March across all national provinces.
“Regarding the trajectory of inflation, as we do not foresee worrying inflationary pressures in the coming months, the Committee revised the projection downward,” stated Manuel Tiago Dias.
The decision reflects growing confidence in the country’s macroeconomic stability despite ongoing global volatility in energy and commodity markets that often affects the region. The Monetary Policy Committee emphasized that it will continue to prudently monitor both internal and external risks that could potentially disrupt this downward trend.
Read more about this topic: Iran War: Angola’s economy among the most benefited in Africa
This strategy aims to ensure that the purchasing power of Angolans remains protected while supporting the ongoing diversification of the nation’s oil-dependent economy.
The BNA’s cautious optimism comes at a time when several African economies are struggling with double-digit inflation and currency devaluation against the dollar. By hitting a target of 11.5%, Angola would move closer to the single-digit inflation goals set by regional trade blocs in Southern and Central Africa.
Economists suggest that the stability of the kwanza and consistent monetary tightening over the past year have played crucial roles in achieving these results.
Further updates on interest rates and reserve requirements are expected in the next quarterly meeting as the bank balances growth with price stability.
