Maputo, 26 May (AIM) – The Monetary Policy Committee of the Bank of Mozambique (CPMO), meeting in Maputo on Monday, decided to keep its benchmark interest rate, known as the MIMO rate, at 9.25 per cent.
A statement from the CPMO said the measure is aimed at consolidating inflation in single digits, in a context marked by fiscal risks and economic uncertainties.
The document also says that the decision was taken considering the favorable evolution of inflation in recent months. “The CPMO considers that maintaining the MIMO rate is consistent with consolidating inflation in single digits in the medium term”, reads the note.
The annual inflation, the document says, slowed to 3.99 percent in April of this year, compared to 4.77 percent recorded in March, mainly reflecting the reduction in food and fuel prices.
Despite the slowdown in inflation, there are risks that could put pressure on prices in the coming months.
“Risks and uncertainties associated with the inflation outlook persist, particularly the worsening fiscal situation, climate shocks, and military instability in some regions of the country”, reads the document.
“The prospects for economic recovery remain positive, supported by the performance of the services, agriculture, and extractive industries”, adds the note.
At the same meeting, the CPMO also decided to maintain the permanent liquidity lending and absorption facilities at 12.25 percent and 6.25 percent, respectively.
The reserve requirement ratios for liabilities in national and foreign currency remain at 39 percent and 39.50 percent, respectively.
(AIM)
Am/
