Bank of Mozambique keeps interest rates unchanged

21 October 2014

The Bank of Mozambique (BM) kept the country’s benchmark interest rates unchanged at its most recent monetary policy committee meeting, the central bank said in a statement sent to Macauhub in Maputo.

Given the “risks of global economic downturn and the volatility of prices of goods and services in the international market,” the Bank of Mozambique opted to keep the 8.25 percent interest rate on the marginal lending facility and the permanent deposit facility at 1.50 percent as well as the minimum reserve requirement unchanged at 8 percent.

The bank also decided to intervene in the interbank markets to ensure that the monetary base in October is set at 53.786 billion meticais (US$1.732 billion), after, in September there was a drop of 149 percent below the target set when the value stood at 52.846 billion meticais (US$1.701 billion ).

The Mozambican central bank expects the country to post inflation of 6 percent in 2014, compared to a forecast of 4.3 percent by the International Monetary Fund and 3 percent from the Economist Intelligence Unit.

The Bank of Mozambique said that foreign reserves in September fell by US$158.3 million to US$3.0925 billion, or the equivalent of 4.3 months of imports of goods and services, with the exception of the country’ major projects. (macauhub/MZ)