LUANDA — Angola’s central bank has cut its key interest rate by 125 basis points, signaling growing confidence in the country’s improving inflation outlook and creating potentially more favorable conditions for businesses and investors.

The Banco Nacional de Angola reduced its benchmark rate as inflation continued its downward trend. The central bank said it expects the slowdown in price pressures to continue despite ongoing uncertainty in the global economic environment.

Economic analysts say the rate cut could help support business activity by gradually improving access to credit and reducing financing costs. Lower borrowing costs could benefit companies seeking to expand operations, invest in equipment, or finance new projects.

The decision also comes as Angola continues efforts to strengthen economic stability and attract investment beyond traditional oil-sector activity.

Business leaders and investors will be watching how commercial banks respond to the new monetary conditions and whether improved financing access supports greater private-sector expansion.

The latest rate cut marks an important development for Angola’s business environment as policymakers seek to balance inflation control with stronger economic growth.