Angola delivers third straight rate cut, sees inflation falling further

By Miguel Gomes

LUANDA, Jan 14 (Reuters) -

Angola's central bank cut its main ?interest rate for the third policy meeting in a row on ?Wednesday, saying it expected an inflation slowdown to ?continue this year.

The Bank of Angola ?cut its ?policy rate by 100 basis points to 17.50%, following 50 basis-point ?rate cuts at its last ?two meetings.

Inflation in the Southern African oil-producing country slowed to 15.70% year on ?year in December, down from ?27.50% ?a year earlier and below the central bank's end-2025 target of 17.50%.

Governor Manuel Tiago Dias said ?the central bank expected inflation to fall further in the coming months, ending the year at 13.5%.

The bank has previously said it wants to see inflation in single digits.

Angola's government is ?trying ?to bolster public finances by cutting subsidies and opening up its state-dominated economy to more ?private investment.

Its finance ministry said on Tuesday that it had extended a one-year

$1 billion debt facility

with JPMorgan (JPM) for three years and secured an extra $500 million in financing.

On Wednesday the central bank projected economic growth ?of 3.5% this year, higher than its growth estimate of 2.6% for 2025.

(Reporting by Miguel Gomes; Additional reporting by Sfundo Parakozov; Writing by ?Anathi Madubela; Editing by Alexander Winning and Ed Osmond)