Central Bank of Mozambique Leaves Rates on Hold

At its July 11th, 2014 meeting, the Monetary Policy Committee decided to leave the benchmark interest rate unchanged at 8.25 percent, aiming to ensure compliance with macroeconomic targets.

The central bank left its standing lending facility rate unchanged at 8.25 percent for the ninth straight meeting. The deposit facility rate was kept at 1.50 percent and reserves requirements ratio was left unchanged at 8.0 percent.

In setting up the right monetary policy, the Committee took into consideration the national and international economic situation and the inflation rate. Policymakers also considered signs of global economic activity slowdown and high volatility in prices of major commodities that weight in the country’s balance of payments.

In July, the central bank decided to intervene in interbank markets to ensure the monetary base target of 50,471 million Meticais.

Central Bank of Mozambique Leaves Rates on Hold

Isabel Felino | isabel.felino@tradingeconomics.com
7/11/2014 5:18:35 PM