Bank of Mozambique reduces base interest rate to 7.5 pct

10 November 2014

The Bank of Mozambique has reduced the interest rate on the marginal lending facility by 75 basis points to 7.5 percent, with immediate effect, the central bank said in a statement issued Friday in Maputo.

The Monetary Policy Committee of the Bank of Mozambique also decided to keep the interest rate on the marginal deposit facility at 1.50 percent and the reserve requirement ratio at 8.0 percent.

The committee considered that the country’s main macroeconomic indicators, particularly Gross Domestic Product and inflation, continued to show a favourable trend, in line with the established programme for this year and which is likely to continue in 2015.

As inflation is expected to remain low and stable, at below the annual target of 6.0 percent, the Monetary Policy Committee decided to intervene in the interbank markets to meet the target of cash in circulation in November 2014, of 54.25 billion meticais. (macauhub/MZ)