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Angola's central bank maintained its benchmark BNA rate at 8.75 percent after inflation rose by 0.09 percent in July for an annual rate of 6.98 percent, up from 6.89 percent in June.
The Bank of Angola (BNA), which raised its rate by 50 basis points last month, said credit to the economy in July was up by an annual 19.5 percent to 3.295 billion kwanza. The BNA raised its rate last month to stimulate growth in credit as inflation is expected to continue to trend downward.
The BNA also said total sales of foreign currency in the first seven months amounted to $19.858 billion, an increase of 63.33 percent from the same period in 2013.
The average exchange rate of the kwanza rose by 0.51 percent in July from June for a rate of 97.08 to the U.S. dollar, slightly firmer from the start of the year at 97.61.
July's rate cut by the BNA was the first change in rates since November 2013 and the central bank also reduced the rate on its standing lending facility by 25 basis points to 9.75 percent.
Last month the International Monetary Fund (IMF) forecast that Angola's inflation rate would rise to 7.5 percent by the end of the year due to the one-off effects on new tariffs on imports before continuing the downtrend through 2015 and beyond.
The growth of Angola's economy is expected to ease to 3.9 percent this year as the expansion in agriculture slows from last year and due to a temporary drop in oil production in the first half.
For 2015 growth is forecast by the IMF to accelerate to 5.9 percent as oil production recovers and non-oil economic activity remains robust.
Angola's government has targeted economic growth this year of 5 to 7 percent after 4.10 percent growth last year, down from 5.2 percent in 2012.
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Turkey's central bank maintained its benchmark repo rate at 8.25 percent, as expected, but continued to nudge down its overnight interest rate corridor and repeated its guidance from July that it would maintain a tight monetary policy stance by "keeping a flat yield curve until there is a significant improvement in the inflation outlook."
The Central Bank of the Republic of Turkey (CBRT) cut the overnight rate on marginal funding, the ceiling of its interest rate corridor, by 75 basis points to 11.25 percent but maintained the borrowing rate, or the floor in the corridor, at 7.5 percent.
The CBRT also cut the borrowing rate for primary dealers via repo transactions by 75 basis points to 10.75 percent and the lending rate at its late liquidity window by 75 basis points to 12.75 percent while it kept the borrowing rate at zero percent.
The Turkish central bank has been slowly rolling back its sharp rate hike in January in response to volatility from capital outflows and a plunge in the value of the lira currency. So far it has cut its benchmark repo rate by 175 basis points since May after raising it by 550 points on Jan. 28.
In January the CBRT also shifted its overnight rate corridor sharply upwards by raising the funding rate to 12.0 percent from 7.75 percent and the borrowing rate to 8.0 percent from 3.5 percent.
Last month the central bank cut the borrowing rate to the current 7.50 percent and with today's cut in the funding rate to 11.25 percent, the central bank continues to shift the rate corridor downwards.
The CBRT said the negative impact of exchange rate developments since mid-2013 year on inflation are gradually decreasing but high food prices continue to delay an improvement in the outlook for inflation.
"In this respect, the Committee also evaluated the possible impact of the drought and the geopolitical risks on the inflation outlook," the central bank said, adding that loan growth continues at reasonable levels in response to its tight policy stance and private demand is modest.
Turkey's headline inflation rate rose to 9.32 percent in July from 9.16 percent in June but still down from 9.66 percent in May, the high for this year.
Economists had expected to sticky inflation rate to limit the central bank's room to cut its benchmark rate in light of a decline in global risk appetite and signs that the United States remains on track to raise rates at some point in 2015.
The Turkish government, including Prime Minister Recep Tayyip Erdogan who won the election earlier this month and assumes office on Aug. 28, has kept up pressure on the central bank to lower rates further to boost economic growth. However, so far the bank's governor, Erdem Basci, has resisted the pressure, helping maintain the credibility of the central bank with global investors.
Basci has been under pressure ever since the sharp rate hikes in January, determined to bring inflation back to the bank's 5.0 percent target in 2015.
After plunging in January to a low of 2.34 to the U.S. dollar in late January from 2.15 at the start of the year, the lira rebounded in response to the central bank's rate hikes.
But this month it has drifted lower, along with bonds, reflecting some discomfort among investor over Erdogan's views of monetary policy and his plans to expand his role to one that combines head of state with the executive power of running the government.
But the lira gained in response to the bank's decision to maintain rates today. The lira was trading at 2.15 to the U.S dollar today, up from 2.16 yesterday.
Turkey's GDP expanded by 1.7 percent in the first quarter of this year from the previous quarter for annual growth of 4.3 percent, slightly down from 4.4 percent in the fourth quarter of 2013.
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Hungary's central bank held its base rate steady at 2.10 percent, living up to its word that it would freeze rates after 24 consecutive rate reductions.
The National Bank of Hungary on July 22 cut its rate by 20 basis points, for a cumulative reduction of 490 points in its policy rate since August 2012, but added it was ending the two-year easing cycle as the rate had now reached a level that would ensure price stability and provide enough support for economic activity.
At his press conference, central bank President Gyorgy Matolcsy then said the bank planned to maintain rates at that level until the end of 2015.
In today's statement, the central bank did not make further comments.
Last month the central bank said inflationary pressures were likely to remain moderate for an extended period and the negative output gap was expected to close gradually.
Hungary's headline inflation rate rose to 0.1 percent in July after three months of deflation. In its June quarterly inflation report, the central bank lowered its forecast for inflation this year to an average of zero percent, sharply down from its March forecast of 0.7 percent.
For 2015 the bank forecast inflation of 2.5 percent, with prices moving into line with the bank's 3.0 percent inflation target in the second half of the year.
Hungary's Gross Domestic Product expanded by 0.8 percent in the second quarter from the first for annual growth of 3.9 percent, up from 3.5 percent in the first quarter.
The bank has forecast growth this year of 2.9 percent and 2.5 percent in 2015, up from 1.1 percent in 2013.
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