By Miguel Gomes
LUANDA (Reuters) -Angola’s central bank kept its main lending rate at 20.00% on Tuesday, with its governor upbeat that a slowdown in inflation would continue in the coming months.
Inflation in the oil-producing Southern African nation has been in double digits since mid-2015, but since the start of this year it has been falling, dropping below 26% in April from 27% in March.
Analysts say high global food prices are an inflation risk given the country’s dependence on imported food but the strength of the kwanza currency is a mitigating factor.
José de Lima Massano, the central bank governor, told a news conference that the kwanza’s gains were linked to the country’s improved terms of trade.
He said international reserves stood at $15.34 billion at the end of April, equivalent to more than 10 months of import cover, and that economic growth this year was forecast at around 2.5%.
Under President João Lourenço, who took office in 2017, Angola is trying to modernise its economy. Part of its strategy is to sell government stakes in state-owned companies like oil company Sonangol, diamond miner Endiama and national airline TAAG.
The central bank has kept its benchmark lending rate at 20.00% since July 2021.
(Reporting by Miguel GomesWriting Alexander WinningEditing by James Macharia Chege)
