Tuesday, January 14, 2014

Mozambique holds rate steady amid caution and prudence

    Mozambique's central bank held its benchmark rate on the standing facility steady at 8.25 percent, maintaining what it described as "a scenario the requires caution and prudence."
    The Bank of Mozambique, which cut its rate by 125 basis points in 2013, also said it would ensure that the monetary base during January does not exceed 45.892 billion meticais, down from the December target of 47.493 billion.
    Mozambique's inflation rate eased to 3.54 percent in December from November's 4.04 percent.
    The bank said the government's inflation target for 2014 was 6.0 percent, along with real growth in Gross Domestic Product of 8 percent and international reserves that can cover four months of imports.
    "The MPC considered that the achievement of these objectives will allow the country to remain in the forefront of the fastest growing countries with macroeconomic stability in sub-Saharan Africa," the bank said.
    Mozambique's GDP expanded by an annual 8.1 percent in the third quarter, in line with the bank's revised projections. Economic activity was helped by an 8.8 percent rise in the tertiary sector, while the primary sector grew 7.0 percent, driven by mining.

    Net international reserves rose by US$ 81 million to $3.009 billion in December, in line with the target, while gross reserves were enough to cover 5.1 months of imports.
    Mozambique's medical ended the year at 29.95 to the U.S. dollar, representing a monthly depreciation of 0.07 percent and an annual drop of 1.49 percent, after a 0.2 percent decline in November.
   
    www.CentralBankNews.info
   
   

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