The governor of Angola's National Bank, Manuel Tiago Dias, stated that the country's inflation battle is not yet won, despite significant progress. Speaking at a conference marking the bank's 50th anniversary, Tiago Dias noted that inflation has been consistently decreasing, allowing for a cautious easing of monetary policy. The inflation rate has dropped from 27.5% in 2024 to 15.7% in December 2025 and has been in single digits since July.
Tiago Dias emphasized that the central bank's policy has been instrumental in reducing inflation, citing a combination of rigorous monetary policy and effective communication in anchoring inflation expectations. The bank projects an inflation rate of around 8% by the end of 2026. He stressed that this achievement was not easily attained and required a concerted effort from the central bank. The governor also highlighted the need for sustained economic growth, job creation, and increased productivity.
The central bank has revised its growth projection for 2026, increasing it to 6.15%. However, Tiago Dias cautioned that growth alone is not sufficient; it must be sustainable, productive, and job-generating. He emphasized that the evolution of inflation is crucial in this context. The governor also noted that Angola's financial system has undergone significant transformations over the past five decades, shifting from a predominantly state-owned and centralized banking system to a more diversified, regulated, and resilient one.
The banking sector currently comprises 22 commercial banks, which face challenges in effectively catalyzing the economy through credit allocation to strategic sectors. Tiago Dias emphasized the need for banks to direct resources towards key sectors without compromising asset quality or financial stability. He outlined several challenges facing the sector, including consolidating single-digit inflation, promoting economic diversification, and deepening financial markets.
The central bank governor also highlighted the importance of investing in human capital, stating that a central bank's effectiveness is directly tied to the capabilities of its staff. He emphasized that the bank's administration remains committed to upholding monetary sovereignty with rigor, responsibility, and confidence. Tiago Dias noted that the bank's 50-year legacy is a testament to its dedication to these principles.
The conference, which marks the 50th anniversary of the National Bank of Angola, brings together governors of central banks, politicians, and financial experts from Angola and abroad. The event aims to reflect on the role of central banks in promoting sustainable disinflation and monetary policy credibility. Tiago Dias' remarks underscore the ongoing efforts of the central bank to maintain economic stability and promote sustainable growth.
As the central bank looks to the future, it faces several challenges, including the need to maintain a stable financial system, promote economic diversification, and enhance financial inclusion. Tiago Dias emphasized that the bank remains committed to its mission of ensuring monetary sovereignty and promoting economic stability. The conference provides a platform for experts to share insights and discuss strategies for addressing these challenges and promoting sustainable economic growth.
Key points
- Angola's central bank governor says inflation battle not yet won despite progress
- Inflation rate has dropped from 27.5% in 2024 to 15.7% in December 2025
- Central bank projects 8% inflation rate by end of 2026
