Bank of Mozambique keeps main interest rates unchanged

13 May 2013

The Bank of Mozambique has decided to keep the main interest rates unchanged and to intervene in the interbank market to ensure that cash in circulation does not exceed 39.7 billion meticals at the end of May, the central bank said in a statement published in Maputo.

In a statement, the Mozambican central bank said that the Monetary Policy Commission had decided to keep interest rates unchanged on its permanent liquidity and deposit facilities at 9.5 percent and 2.25 percent, respectively, and that the required reserve rate remained at 8 percent.

In the document, the central bank added that the rate of inflation had risen by 0.075 percentage points to 5.05 percent in April continuing the growth trend that began in February.

In a statement sent to Macauhub in Maputo the Mozambican central bank said that the rate of inflation in April reflected rises in the categories of domestic fuel and goods, such as furniture and gas, and food and non-alcoholic beverages.

According to the bank the inflationary trend seen since February is the result of “a difficult economic climate at the beginning of the year, affected by flooding, which also affected the supply of food in some markets, mainly of fruit and vegetables.” (macauhub)