Bank of Mozambique to intervene in interbank market to contain price rises

18 July 2011

Maputo, Mozambique, 18 July – The Bank of Mozambique has decided to intervene in the interbank market in order to control price rises and ensure that macroeconomic targets set out by the government for 2011 are met, the central bank said in a statement published in Maputo.

The Bank of Mozambique proposes to ensure that the balance of the monetary base – the sum of all bank notes and coins issued by the central bank and in circulation – does not exceed 31.75 billion meticals at the end of July, 2011.

Macroeconomic targets set out by the government for this year forecast economic growth of 7.2 percent, average annual inflation contained at around 8 percent and goods exports of US$2.402 billion, representing a rise of 15 percent on 2010.

Cited by Mozambican newspaper Notícias the central bank said that this recent decision was based on the need to align the financial results of the first half and the impact of the recent adjustment in fuel prices on the national market with the macroeconomic targets set out for this year.

The Central Bank’s decision comes at a time when the figures from the National Statistics Institute (INE) show that annual inflation, measured by the Consumer Price Index in the city of Maputo, continued to fall from 11.36 percent in May to 9.28 percent, which is the first time the index has been below 10 percent since May, 2010. (macauhub)