Africa-Press – Mozambique. The Monetary Policy Committee (CPMO) of the Bank of Mozambique decided on Friday to keep the monetary policy interest rate, the MIMO rate, at 13.25%, it said in a statement.
“The decision is based on maintaining the outlook for single-digit inflation, despite the prevalence of high risks and uncertainties, particularly those arising from the impacts of Covid-19,” the document read.
In addition, the CPMO decided “to reduce reserve requirement ratios for liabilities in local currency from 11.50% to 10.50% and in foreign currency from 34.50% to 11.50% to make more liquidity available to the economy.
Annual inflation stood at 5.6% in August, after 5.5% in July, in a context of less depreciation of the metical against the US dollar, the central bank said.
For the short and medium-term, “inflation is expected to remain in single digits, despite prospects of rising food and oil prices on the international market,” it added.
In today’s note, the CPMO said that the outlook for gradual economic recovery in 2021 and 2022 is consolidated, “driven, above all, by external demand.
Gross domestic product (GDP) grew by 2% in the second quarter compared to the same period of 2020, “due to the recovery of most sectors of economic activity,” it concluded.
