More than 80% of the credit granted by commercial banks in August was due to a ‘push’ from the central bank.
To date, few projects have passed the banks’ scrutiny to apply for bank financing. Up until last August, the banks released an additional 5 billion Kwanzas in credit, 88% of which was due to the obligation of Notice 10 of the BNA, which requires banks to finance projects that can boost the national economy.
A total of 5.12 billion Kwanzas was the amount of credit Angolan commercial banks had, up until August, in stock for the economy, with 88% of the money being released under Notice 10 of the central bank, which requires banks to give up 2.5% of their assets to finance the national economy, a measure that many banks have resisted given the complexity of several projects.
The figures are from the National Bank of Angola (BNA) and were recently made public on the sidelines of the Monetary Policy Committee (CPM) meeting, also showing that the 5.12 trillion Kwanzas in August represent
“The credits granted under Notice 10 represented 88% of the total credit stock granted by the Banks to the real sector of the economy”, reads the CPM report of the BNA.
At this meeting, the Monetary Policy Committee decided, among others, to maintain the BNA Rate at 19.5%; to maintain the Permanent Liquidity Provision Facility Interest Rate at 20.5%, in addition to maintaining the Permanent Liquidity Absorption Facility interest rate at 18.5%.
According to the CPM, these decisions are justified by the need to maintain monetary conditions appropriate to the slowdown in the pace of price growth in the economy and to reduce inflationary pressures in the short term.
Also at the CPM meeting, the BNA board analysed the monthly variation of the National Consumer Price Index (IPCN), which, according to data from the National Statistics Institute, continued the deceleration trend that began in May, reaching 1.61% in August, compared to 1.68% in July, resulting from the relative improvement in the supply of essential consumer goods and the adjustment of the liquidity level to economic activity.
The variation in the price index for the Food and Non-Alcoholic Beverages class was 1.58% compared to 1.86% in July, contributing to the deceleration of total inflation. The contribution of this class fell from 1.12 percentage points to 0.95 percentage points.
It should be noted that around 24 of the 732 products that make up the IPCN matrix were responsible for 59.63% of the observed variation, equivalent to a contribution of 0.95 percentage points, with emphasis on enrolments and registrations in the first cycle of secondary education (0.16 percentage points), chicken thighs (0.11 percentage points) and fresh and frozen horse mackerel.
Year-on-year inflation stood at 30.53% compared to 31.09% in the previous month, beginning a downward trend that is expected to continue in the coming months, taking into account the current liquidity conditions and supply of essential consumer goods.
More than 80% of the credit granted by commercial banks in August was due to a ‘push’ from the central bank
To date, few projects have passed the banks’ scrutiny to apply for bank financing. Up until last August, the banks released an additional 5 billion Kwanzas in credit, 88% of which was due to the obligation of Notice 10 of the BNA, which requires banks to finance projects that can boost the national economy.
A total of 5.12 billion Kwanzas was the amount of credit Angolan commercial banks had, up until August, in stock for the economy, with 88% of the money being released under Notice 10 of the central bank, which requires banks to give up 2.5% of their assets to finance the national economy, a measure that many banks have resisted given the complexity of several projects.
The figures are from the National Bank of Angola (BNA) and were recently made public on the sidelines of the Monetary Policy Committee (CPM) meeting, also showing that the 5.12 trillion Kwanzas in August represent
“The credits granted under Notice 10 represented 88% of the total credit stock granted by the Banks to the real sector of the economy”, reads the CPM report of the BNA.
At this meeting, the Monetary Policy Committee decided, among others, to maintain the BNA Rate at 19.5%; to maintain the Permanent Liquidity Provision Facility Interest Rate at 20.5%, in addition to maintaining the Permanent Liquidity Absorption Facility interest rate at 18.5%.
According to the CPM, these decisions are justified by the need to maintain monetary conditions appropriate to the slowdown in the pace of price growth in the economy and to reduce inflationary pressures in the short term.
Also at the CPM meeting, the BNA board analysed the monthly variation of the National Consumer Price Index (IPCN), which, according to data from the National Statistics Institute, continued the deceleration trend that began in May, reaching 1.61% in August, compared to 1.68% in July, resulting from the relative improvement in the supply of essential consumer goods and the adjustment of the liquidity level to economic activity.
The variation in the price index for the Food and Non-Alcoholic Beverages class was 1.58% compared to 1.86% in July, contributing to the deceleration of total inflation. The contribution of this class fell from 1.12 percentage points to 0.95 percentage points.
It should be noted that around 24 of the 732 products that make up the IPCN matrix were responsible for 59.63% of the observed variation, equivalent to a contribution of 0.95 percentage points, with emphasis on enrolments and registrations in the first cycle of secondary education (0.16 percentage points), chicken thighs (0.11 percentage points) and fresh and frozen horse mackerel.
Year-on-year inflation stood at 30.53% compared to 31.09% in the previous month, beginning a downward trend that is expected to continue in the coming months, taking into account the current liquidity conditions and supply of essential consumer goods.
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