Bank of Mozambique keeps main interest rates unchanged

13 December 2012

The Bank of Mozambique decided Wednesday to keep the country’s main interest rates unchanged and the Monetary Policy Committee said it was confident that the 5.6 percent inflation target for this year would be met.

In a statement issued in Maputo, the Mozambican central bank said that the interest rates on its permanent liquidity and deposit facilities remained at 9.5 percent and 2.25 percent, respectively, and that the required reserve rate remained at 8 percent.

The Monetary Policy Committee also decided to intervene in the interbanking market in order to increase cash in circulation to a maximum of 40.5 billion meticals at the end of December.

In the statement the central bank said that bank loans to the private sector had increased by 1.485 billion meticals in October, to a total of 109.358 billion meticals, and that the average interest rate on one-year loans provided by retail banks was 21.54 percent. (macauhub)