Angola Central Bank Raises Key Rate to Record High of 16 Percent

Angola’s central bank raised its benchmark interest rate to a record 16 percent, the third increase this year, as the oil-exporting economy contends with the slide in prices that has dented its currency.

The key rate was raised from 14 percent, Luanda-based Banco Nacional de Angola said on Thursday after a meeting of the monetary policy committee. The bank has now increased the benchmark by five percentage points since January.

Government revenue has plunged and the kwanza declined against the dollar due to the slump in crude prices since mid-2014. Angola relies on oil for about 95 percent of export income.

The International Monetary Fund said on Thursday that Angola informed the fund that it wants to end talks about a possible loan program. The nation only wants discussions to continue about the country’s annual economic assessment, IMF spokesman Gerry Rice said at a briefing in Washington.

Angolan monetary policy makers will next meet on July 29, the central bank said.

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