Bank of Mozambique decides to keep benchmark interest rates unchanged

17 May 2016

The Bank of Mozambique has decided to keep key interest rates unchanged, including the marginal lending facility at 12.75 percent, according to a recent decision by its Monetary Policy Committee.

The interest rate on the standing deposit facility was kept at 5.75 percent and reserve requirements remained at 10.5 percent for liabilities in Mozambican currency and 15 percent for liabilities in foreign currency.

The reserve requirement in foreign currency was one of the decisions taken by the committee at its meeting on 20 April, to “change the mandatory reserve system, separating the reserve base in local currency and foreign currency and differentiating the respective rates, with effect from the period beginning on 7 June 2016.”

At the meeting on 20 April the Monetary Policy Committee decided to increase the interest rate on the marginal lending facility by 200 basis points to 12.75 percent and the deposit facility by 150 basis points to 5.75 percent.

The central bank also said in a statement that foreign reserves in April totalled US$1.76 billion, which was enough to secure imports of goods and services for 3.2 months, excluding major projects. (macauhub/MZ)