The Bank of Mozambique (BoM) announced that savings deposits reached a total of 302.5 billion meticais (4.6 billion dollars) in May this year, representing an increase of 15%.
According to a report, in the same period of 2024, the figures were 264.7 billion meticais (4.1 billion dollars), “growing progressively every month.”
The financial institution also reported that demand deposits increased, rising from 377.7 billion meticais (5.8 billion dollars) last year to 440.4 billion meticais (6.8 billion dollars) in May this year, an increase of 16.5%. The central bank reminded that there are currently 15 commercial banks and 12 microbanks operating in Mozambique, as well as credit cooperatives and savings and credit organizations, among others.
Recently, the Monetary Policy Committee (CPMO) of the Bank of Mozambique decided to cut, for the ninth consecutive time, the monetary policy interest rate (MIMO rate), setting it at 10.25%. The new rate represents a decrease of 75 basis points and reflects, according to the central bank, “the continuous consolidation of inflation expectations in single digits in the medium term, driven by the favorable trend in international commodity prices.” However, the monetary authority warns that significant domestic risks remain.
“This measure essentially stems from the ongoing consolidation of inflation expectations in single digits, partly reflecting the favorable trend in international commodity prices, despite the maintenance of risks and uncertainties at the domestic level associated with projections,” stated Rogério Zandamela, governor of BoM.
Despite the positive inflation trend, the governor warned about risks that could put pressure on prices in the coming months. Among the highlighted factors are the worsening fiscal situation, uncertainties regarding the recovery of productive capacity, the supply of goods and services, and climate shocks.
“The medium-term outlook points to a gradual recovery of economic activity, excluding Liquefied Natural Gas production, partly favored by the reduction in interest rates and prospects for implementing projects in strategic areas,” added Zandamela.
Source: Diário Económico
