Bank of Mozambique raises benchmark interest rates

15 December 2015

The Bank of Mozambique has decided to increase the main benchmark interest rates, such as the marginal lending facility, which was increased by 150 basis points to 9.75 percent, the central bank said.

In a statement announcing the main decisions of the Monetary Policy Committee (MPC), the Bank of Mozambique also said the deposit facility rate was increased by 100 basis points to 3.75 percent and reserve requirement rate was unchanged at 10.5 percent.

The central bank said it also decided to intervene in the interbank market to ensure that money supply in December will not exceed 69.85 billion meticais.

To justify these decisions, the MPC mentioned risks and uncertainties regarding the recovery of the world economy, along with indications that the fall in international prices of major commodities may last for some time, as well as a strong dollar against most currencies. (macauhub/MZ)