Bank of Mozambique keeps main interest rates unchanged

11 September 2013

The Bank of Mozambique has decided to keep the interest rate on its permanent liquidity facility unchanged at 8.75 percent, which is the lowest rate since December 2008, the central bank said in a statement issued in Maputo Tuesday.

The Bank of Mozambique also said that the Monetary Policy Committee had also kept the rate of its permanent deposit liquidity facility at 1.50 percent and the required reserve rate at 8.0 percent.

After analysing the country’s economic situation the committee also decided to intervene in interbank market in order to ensure that cash in circulation does not exceed 43.817 billion meticals at the end of September of this year.

The Bank of Mozambique has reduced the interest rate on its permanent liquidity facility by 6 percentage points since last year in order to stimulate the economy, which has seen low levels of inflation.

In the statement, the central bank said that foreign reserves had increased by US$407 million to US$2.825 billion at the end of August, as a result of Italian group ENI paying US$400 million in taxes on the sale of a stake in the Area 4 oil block of the Rovuma basin in northern Mozambique. (macauhub)