Inflation continues downward trajectory

The Monetary Policy Committee (CPM) of the National Bank of Angola (BNA), within the framework of the evolution of prices in the national economy, have noted that inflation, in Angola, continues to pursue your downward trajectory initiated in January 2017. The Monetary Policy Committee (CPM), which has been meeting in your 68th ordinary session in Luanda, June 30, analyzed the evolution of the national economy indicators highlight to the Real sector, Fiscal, monetary and external, the behavior of the international economy and paid particular attention to the development of prices in the economy. So, in may 2017, the monthly inflation rate, as measured by the consumer price index in the province of Luanda, published by the National Statistics Institute, was 1,76%, against 2, 0% in April. Inflation for the last 12 months stood at 34, 8%, against 36,33% in the previous month, reflecting the deceleration of inflation monthly, compared to the level recorded in may 2016, which was 3,46%. The class "goods and Services", with a contribution of 0.17 percentage points was the one that had the greatest impact on reducing inflation, with a variation of 1,90%. The classes "food and non-alcoholic beverages" and "recreation and culture" also have for their contributions in reducing the monthly inflation. The level of the provinces, the Huíla that registered the lowest variation, 1,16%. In the same period, the LUIBOR remained Overnight in 22,40%, and in maturities of 3 and 12 months the rates were at 20,32% and 25,33%, per year, respectively. According to preliminary data, in may 2017, credit to the economy increased by 0, 1%, the gross credit to Central Government (created and not created) decreased by 0,58%, while government deposits in the banking system decreased in 5,71%. The means of payment represented by aggregate M2 decreased in 0, 3% in may 2017 and decreased in 3,47% in the last 12 months. The monetary base restricted national currency 3,26% in monthly terms and expanded over the last 12 months, registered a contraction of 18,93%. Still in the month of May this year, the BNA sold to economic agents, through the commercial banks USD 1,000,000,654.2 USD 815,300,000 against the previous month. In the foreign exchange market, the average exchange rate of the Kwanza against the U.S. dollar stood at 165.92 Kz, remaining unchanged. However, following the analysis of the evolution of the main macroeconomic indicators, the Monetary Policy Committee (CPM) decided to maintain the base rate of interest-BNA-Rate 16.00% in a year, maintain the interest rate of liquidity Absorption facility in 20.00%, and reduce the interest rate of liquidity Absorption facility seven days of 5.25% to 3.25% , per year. To maintain the stability of the General level of prices, the Monetary Policy Committee (CPM) reports that the reference exchange rate will remain unchanged.