Bank of Mozambique keeps interest rates unchanged

18 January 2016

The Monetary Policy Committee of the Bank of Mozambique decided to keep key interest rates and reserve requirements unchanged, at 10.5 percent, according to a statement issued Friday in Maputo.

The interest rates on the marginal lending facility stand at 9.75 percent and the deposit facility at 3.75 percent. The committee also decided to intervene in the interbank market to ensure that cash in circulation in January will not exceed 70.211 billion meticais.

In the document, the committee said the economic growth target of 7 percent and annual inflation of 5.6 percent were a challenge, noting that drought and flooding may increase risks.

At the end of 2015, Mozambique had US$1.997 billion in net foreign reserves, which was enough to cover 3.84 months of imports of goods and services, excluding the operations of major projects. (macauhub/MZ)