The governor of the Banco Nacional de Angola (BNA), Manuel Tiago Dias, has said that Angola's fight against inflation is not yet over, even as progress achieved has created conditions for a gradual easing of monetary policy.

Tiago Dias was speaking at the opening of the International Conference on Sustainable Disinflation and Monetary Policy Credibility, held on Friday (30 May) in Luanda, as part of celebrations marking the central bank's 50th anniversary.

According to Tiago Dias, the consistent deceleration of inflation had created conditions to begin, in a prudent manner, the process of monetary policy easing, while keeping the real policy interest rate at positive levels.

"The battle against inflation has not yet been won, but it is sufficiently consolidated to allow for the easing of monetary policy," he said.

The governor recalled that year-on-year inflation fell from 27.5% in 2024 to 15.7% in December 2025. The deceleration trend was sustained throughout the past year, with the indicator returning to single digits from July onwards.

In September, inflation stood at 8.43%, compared with 18.16% in the same period of the previous year. The BNA projects an inflation rate of around 8% by the end of 2026.

Tiago Dias attributed the results to the application of a rigorous monetary policy and a communication strategy designed to anchor inflation expectations.

"This result was not achieved through shortcuts. It resulted from a rigorous monetary policy associated with communication aimed at anchoring inflation expectations," he stressed.

On economic growth, the governor announced that the Monetary Policy Committee had revised upwards its projection for 2026, setting it at 6.15%.

Despite the positive growth outlook, he noted that Angola's challenge lies in ensuring that economic expansion is sustainable, productive, and capable of generating employment.

"We need to grow in a sustained, productive manner and with the capacity to create jobs," he said, highlighting the importance of price stability to overall economic stability.

Financial system faces financing challenges

The governor noted that Angola currently has 22 commercial banks in operation. According to Tiago Dias, the sector must reinforce its role in financing the economy, channelling resources into strategic areas without compromising asset quality or financial stability.

Among the main challenges identified, he cited consolidating inflation at single-digit levels, economic diversification, the deepening of foreign exchange, monetary and capital markets, the rebuilding of macroeconomic buffers, and the expansion of financial inclusion.

He also advocated for keeping pace with innovation through adequate financial supervision and the development of the central bank's human capital.

Marking the BNA's 50th anniversary, Tiago Dias affirmed that monetary sovereignty demands permanent effort, grounded in rigour, responsibility, and trust.

The conference brings together in Luanda central bank governors, political and government representatives, members of financial supervisory bodies, managers, academics, and national and international experts.

Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/?p=559134