Mozambique’s Monetary Policy Unchanged in December

At its December 11th meeting, Bank of Mozambique kept its main lending rate at 8.25 percent as the country is on target to meet key macroeconomic goals for this year, especially inflation rate.

In Maputo, monthly inflation rate accelerated to 0.57 percent in October from 0.23 percent a month earlier. Mozambique’s inflation rate, which aggregates Maputo, Beira and Nampula also accelerated in November to 0.69 percent (0.24 percent in the previous month). 

Bank of Mozambique said that the rise in CPI follows a seasonal trend due to higher food demand and lower domestic supply of fresh vegetables. Yet, the overall trend continues to be explained by the stability of the metical in the domestic market and by administered prices which were in place to mitigate the impact of the international financial crisis, the Bank said.

Foreign exchange reserves decreased in November by USD 23 million to USD 2.93 billion, which accounts for around 5 months of import cover. 

The Bank of Mozambique decided to intervene in the interbank markets in order to ensure that the stock of base money does not surpass 47493 million Meticais, at the end of December of 2013. It also decided to maintain the Standing Lending Facility interest rate at 8.25 percent; maintain the Standing Deposit Facility interest rate at 1.5 percent, and the Reserve Requirements Ratio unchanged at 8.0 percent.

Mozambique’s Monetary Policy Unchanged in December

Joana Taborda |
12/11/2013 3:36:42 PM