Angola plans to introduce a benchmark interest rate in October to help the economy attain price stability and boost household savings, daily newspaper Jornal de Angola reported on Friday, citing the head of the country's central bank.
According to the paper, central bank Governor Jose de Lima Massano said the new interest rate will help guide monetary policy and serve as a reference point for commercial banks when setting their own rates.
Angola wants to cut consumer inflation to 12 percent this year from 15.3 percent at the end of 2010.
Many economists say that goal is optimistic, given the economy shows strong internal demand as it posts rapid growth, combined with limited access to imported goods due to poor logistics.
Still, Massano said the central bank is confident.
At the end of August, the cumulative inflation for the year was 6.8 percent. That allows us to expect the inflation goal for the end of the year will be met, the paper cited him as saying.
Massano added that the Monetary Policy Committee will meet every month to analyse the behaviour of the economy and to evaluate the need to adjust the benchmark rate.
The central banker also announced the introduction of the Luanda Interbank Offered Rate (LUIBOR), an average of the interest rates charged by commercial banks to each other and which will be published daily by the central bank.
Massano said the publication of the interbank rate will help lower the rates commercial banks charge on loans and boost those they pay out for deposits.