Angola central bank cuts policy rate by another 50 basis points

Nov 18 (Reuters) - Angola's central bank cut its main interest rate AOINTR=ECI by 50 basis points to 18.5%, its website showed on Tuesday.

The second consecutive 50-basis-point rate cut comes after inflation fell below the bank's year-end target in October, reaching 17.43% year on year AOCPIY=ECI whereas it had hoped to get it to 17.5% by year-end.

As well as bringing down inflation, Angola's government is trying to bolster public finances by cutting subsidies and opening up its state-dominated economy to more private investment.

In its draft 2026 budget presented last month, it said it aimed to cut total expenditure by about 5% next year, helping narrow its budget deficit to 2.8% of gross domestic product from an estimated 3.3% in 2025.

The budget projected economic growth would accelerate to 4.2% in 2026, up from 3% this year.