Mozambique’s Monetary Policy Unchanged in September

The Bank of Mozambique decided on September 10th to hold the benchmark interest rate at 8.75 percent. The central bank already cut the rate twice this year.

At the international level, the Committee noted the recovery in the advanced economies, the signs of a slowdown in the emerging economies and commodities’ price volatility in the international markets. In July, international prices of sugar, coal, gold, corn, wheat, rice and gas decreased, while cotton and oil prices increased. 

At the national level, Maputo’s monthly inflation rate dropped for the fourth consecutive month in August, due to lower food prices. 

In July, while private sector indebtedness increased 32.1 percent year-on-year, reaching 136.9 billion MZN, the economic climate indicator kept its downward trend, due to lower demand and employment expectations, Bank of Mozambique said. 

The Bank of Mozambique decided to intervene in the interbank markets in order to ensure that the stock of base money does not surpass 43817 million Meticais, at the end of September of 2013. It also decided to hold the Standing Lending Facility interest rate at 8.75 percent; the Standing Deposit Facility interest rate at 1.5 percent, and maintain the Reserve Requirements Ratio unchanged at 8.0 percent.

Mozambique’s Monetary Policy Unchanged in September

Joana Taborda |
9/11/2013 11:03:29 AM