Bank of Mozambique reduces liquidity facility rate by 50 basis points to 16 pct

12 August 2011

Maputo, Mozambique, 12 Aug – The Bank of Mozambique has reduced the interest rate on its permanent loan liquidity facility by 50 basis points to 16 percent and the required reserve rate by 25 basis points to 8.75 percent starting from 22 August, the Mozambican central bank said in a statement.

The bank’s monetary policy commission also decided to intervene in interbank markets in order to ensure that cash in circulation totals 32.5 billion meticals on 31 August of this year.

In the statement the central bank said that the commission’s decisions took into consideration the economic growth objectives, inflation projections for the short and medium term and the challenges that continue in some sectors, with a significant weight in the Gross Domestic Product. (macauhub)