The Monetary Policy Committee (CPMO) of the Bank of Mozambique decided this Wednesday, 25 January, to maintain the monetary policy interest rate, MIMO rate, at 17.25%.
“The measure stems from the prevalence of high risks and uncertainties underlying inflation projections,” despite “the maintenance of the outlook for single-digit inflation in the medium term,” the Bank of Mozambique said in a statement.
In addition, the CPMO decided to increase the Mandatory Reserve coefficients for liabilities in local currency from 10.5 percent to 28 percent, and in foreign currency from 11.5 percent to 28.5 percent.
The aim of this measure is to “absorb excessive liquidity in the banking system, with a tendency to generate inflationary pressure”.
The economic growth outlook for the medium term “has been slightly revised downwards”.
“This revision stems from the tightening of financial conditions globally and consequent slowdown in economic activity in the country’s main trading partners,” it concludes.
The next ordinary meeting of the CPMO is scheduled for 29 March.
