Angola raises benchmark interest rate

Angola’s central bank has increased its benchmark interest rate by 25 basis points to 10.5 percent.

Banco Nacional de Angola made the announcement on Friday. It was the third increase since June.

Angola is the second-largest oil producer in Africa. Oil output represents 40 percent of the country’s gross domestic product (GDP) and more than 95 percent of its export revenue, according to media reports.

The current weak oil prices are hurting the country’s economy, namely export revenues, analysts have stated.

“Falling export receipts have put pressure on the currency, which has depreciated sharply,” Moody’s Investors Service said in a report last month, quoted by Bloomberg news agency.

Angola’s average inflation rate for the 12 months to July 31 reached a three-year high, standing at 10.4 percent, according to official data.

Monetary policy makers in Angola will next meet on September 28.