Angola's central bank delivered a 125-basis-point interest rate cut on Tuesday, saying it expected a long-running inflation slowdown to continue despite an uncertain global economic backdrop.

The Bank of Angola lowered its policy rate to 15.75% from 17.0%, following a 50-basis-point cut in May.

Inflation in the Southern African oil-producing country eased to 10.11% year-on-year in June from 10.88% in May and 19.73% in June last year.

Governor Manuel Tiago Dias told a news conference the central bank expected the pace of price rises to keep diminishing in the near term, despite uncertainties linked to the Middle East conflict.

Set to benefit from energy costs

Oil exporter Angola stands to benefit from elevated global energy prices.

The central bank lowered its year-end inflation forecast to 8.6% from a previous estimate of 11.5%, and raised this year's economic growth forecast to 3.6% from 3.5%.

The central bank recently added China's yuan to the list of currencies local banks can use for their foreign-currency reserve requirements.