Bank of Mozambique increases benchmark interest rates

16 February 2016

The Bank of Mozambique has decided to increase key interest rates, and the marginal lending facility was increased by 100 basis points to 10.75 percent and the deposit facility by 50 basis points to 4.25 percent, the central bank said.

In a statement released Monday, the Bank of Mozambique, announcing the major decisions of the Monetary Policy Committee said reserve requirements remained at 10.5 percent and there would be an intervention in the interbank market in order to ensure the money supply in February would not exceed 68.163 billion meticais.

The same statement said that at the end of January the exchange rate of the metical against the dollar was 46.06 meticais, equivalent to a monthly depreciation of the metical of 2.47 percent, with annual depreciation slowing slightly to 42.25 percent.

At the end of January, the balance of net international reserves had been reduced by US$124.5 million to US$1.869 billion, mainly reflecting the effect of net sales by the Bank of Mozambique in the interbank foreign exchange market worth US$130 million. (macauhub/MZ)