The Bank of Mozambique has reduced the interest rate on its permanent liquidity facility by 100 basis points to 11.50 percent per year, with immediate effect, the central bank said in a statement issued in Maputo Wednesday.
According to the statement, the Monetary Policy Commission of the Bank of Mozambique also decided to keep the Permanent Deposit Facility unchanged at 3.0 percent, and the Required Reserve Rate unchanged at 8 percent and intervene in the interbank markets in order to ensure that the balance of the monetary base does not exceed 35.600 billion meticals at the end of July 2012.
The decisions are the result of analysing the prevailing risks to the international economic situation, as well as short and medium-term projections for Mozambique’s macroeconomic indicators, notably inflation, which are expected to remain stable over the next few months.
In mid June, the Bank of Mozambique had already reduced the permanent liquidity facility rate by 100 basis points to 12.5 percent.
At the time the central bank also reduce the required reserve rate by 25 basis points to 8 percent and kept the interest arte on the permanent deposit facility unchanged at 3 percent. (macauhub)