Friday, July 11, 2014

Mozambique maintains rate as inflation eases, FX stable

    Mozambique's central bank maintained its benchmark standing facility rate at 8.25 percent, saying the current stance was appropriate "bearing in mind the prospects and risks prevailing in the domestic and international economy."
    The Bank of Mozambique, which has kept its rate steady since October 2013, also said it would intervene in interbank markets to reach a monetary base of 50.471 billion meticais in July, up from June's target of 48.122 billion.
    Mozambique's inflation rate eased slightly to 2.75 percent in June from 2.91 percent, with the central bank saying the rate reflects to seasonal impact of the cool season and the stable exchange rate of the metical, which dampened the impact of a general increase in the price level some of the country's trading partners.
    The metical was quoted at 30.65 to the U.S. dollar on June 30, practically unchanged from 30.63 end-May for an annual depreciation of 2.68 percent.
    Mozambique's net international reserves (NIR) rose by US$ 5.5 million during June for a balance of $3.150 billion, or 4.4 months of imports of goods and non factor services.


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