Wednesday, December 11, 2013

Mozambique holds rate as growth, inflation on target

    Mozambique's central bank maintained its benchmark rate on the standing lending facility at 8.25 percent and will ensure that the monetary base does not exceed 47.493 billion meticais by the end of December, up from the target of 45.893 billion end-November.
    The Bank of Mozambique, which has cut rates by 125 basis points this year, most recently in October, said indicators were in line with this year's objectives, including inflation.
    Mozambique's inflation rate eased to 4.04 percent in November from October's 4.42 percent. In last month's inflation report, the bank forecast inflation of 5-6 percent for the fourth quarter, in line with its target for the year.
    Mozambique's Gross Domestic Product rose by an annual 8.7 percent in the second quarter, up from 4.3 percent in the first quarter, but the bank noted that INE's business confidence indicator had deteriorated in October primarily due to a decline in expectations for demand and employment.
    Mozambique's net international reserves eased by US$23 million to 2.931 billion at the end of November due to net sales of foreign exchange by the central bank of $46.6 million with potential foreign exchange losses of $18.5 million.


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