21 November 2012

Mozambique: Reduction of Interest Rates

Maputo — The Monetary Policy Committee of the Bank of Mozambique (CPMO) decided during its eleventh regular session of 2012, to reduce the interest rate on permanent loan facility to 9.5%, to reduce the rate interest on permanent facility deposit to 2.25% and maintain the required reserve ratio set at 8.0%.

It also choses to intervene in the interbank markets to ensure that the balance of the monetary base does not exceed 39,136,000 meticais by the end of November 2012.

Despite an unfavorable international context, the CPMO has found that the main economic and financial indicators of the country continue to evolve in line with the 2012 macroeconomic programme, focusing on inflation, with the anticipation by the end of December, of a decrease in the rate to 5.6%, the target set for this year. Positive outlook for economic growth has been taken into account.

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