Maputo, Mozambique, 13 Dec – The Bank of Mozambique said Monday in Maputo that it had decided to reduce with immediate effect the interest rate on the permanent loan liquidity facility by 100 basis points to 15 percent.
The Mozambican central bank also decided to keep the interest rate on the permanent deposit facility unchanged at 5 percent and required reserve rate by 25 basis points to 8.5 percent starting from 7 January, 2012.
The interest rate on the permanent loan facility, the rate at which retail banks can be funded by the central bank was reduced by half a percentage point last August.
The decisions from the Bank of Mozambique’s Monetary Policy Commission aim to boost the country’s economic growth at a time when the rate of inflation has been falling. (macauhub)