Angola delivers third straight rate cut, sees inflation falling further

By Miguel Gomes

LUANDA, Jan 14 (Reuters) - Angola's central bank cut its main interest rate for the third policy meeting in a row on Wednesday, saying it expected an inflation slowdown to continue this year.

The Bank of Angola cut its policy rate AOINTR=ECI by 100 basis points to 17.50%, following 50 basis-point rate cuts at its last two meetings.

Inflation in the Southern African oil-producing country slowed to 15.70% year on year AOCPIY=ECI in December, down from 27.50% a year earlier and below the central bank's end-2025 target of 17.50%.

Governor Manuel Tiago Dias said the central bank expected inflation to fall further in the coming months, ending the year at 13.5%.

The bank has previously said it wants to see inflation in single digits.

Angola's government is trying to bolster public finances by cutting subsidies and opening up its state-dominated economy to more private investment.

Its finance ministry said on Tuesday that it had extended a one-year $1 billion debt facility with JPMorgan JPM.N for three years and secured an extra $500 million in financing.

On Wednesday the central bank projected economic growth of 3.5% this year, higher than its growth estimate of 2.6% for 2025.