The value of the inflation rate was revised upwards by 19.5% against 18.7%, initially forecast until the end of 2021, according to forecasts by the Monetary Policy Committee of the National Bank of Angola (BNA).
These indicators take into account the supply shock recorded in the first four months of this year, which will require a period of observation in the short term, so that other measures may be taken, in case the course is growing.
“We carried out an upward revision of inflation due to the developments recorded so far. The first four months of the year give this indication and we continue with observation period ”, the governor of BNA, José de Lima Massano, told a press conference at the end of the Meeting of the Monetary Policy Committee (CPM).
According to the BNA governor, the intention is to close the first half of this year with the continuous exercise and see if an operation at the level of reference interest rates is justified.
So far, the class of food products and non-alcoholic beverages have impacted the Consumer Price Index (CPI), influenced by factors such as the prolonged drought, the cordon sanitary imposed in the province of Luanda due to Covid-19, and the reduced volume in imports that occurred in the first four months of the year.
In view of the scenario, there are intentions of imports to compensate for the deficit that still exists in domestic production, for the following months, which will allow a waiting period before the BNA considers a decision, such as a possible increase in the basic rate.
On the occasion, the official assured that the Central Bank will continue to exercise, as the present mission of price stability in the economy.
The governor recalled that Angola was already experiencing a scenario of reduced inflation, until 2019. In 2020, there was an increase, a trend that can also be seen in 2021, taking into account the similarities of the influencing elements.
The next ordinary meeting of the Monetary Policy Committee of the National Bank of Angola will be held on 29 July 2021.
