Bank of Mozambique keeps key interest rates unchanged

19 January 2015

The Bank of Mozambique has decided to keep benchmark interest rates unchanged, namely the marginal lending facility, which was maintained at 7.5 percent, the central bank said in a statement issued last week.

The bank’s Monetary Policy Committee also decided to keep the interest rate on the liquidity absorption facility at 1.50 percent and compulsory reserves at 8.0 percent.

The committee also decided to intervene in the interbank market to ensure that the money supply does not exceed 54.689 billion meticais at the end of January.

The Monetary Policy Committee of the Bank of Mozambique recorded good macro-economic results in 2014, notably inflation – which stood below the established goal – and GDP growth which, based on information available to date, remains in line with projections.

It noted with concern, however, flooding in the centre and north of the country, and re-stated a commitment to prudent monetary policy and closer coordination of policies needed to achieve the macroeconomic targets set for 2015, including annual inflation of 5.5 percent, annual GDP growth of 7.7 percent and international reserves to cover four months of imports of goods and services. (macauhub/MZ)