Monday, September 15, 2014

Mozambique maintains rate on low inflation

    Mozambique's central bank held its benchmark standing facility rate steady at 8.25 percent, noting the positive behavior of inflation in August as well short- and medium-term projections that are improving the prospects for inflation to meet the 6.0 percent target for the end of 2014.
    The Bank of Mozambique, which has maintained its rate since October 2013, also took note of the risks of slowing global economic activity, volatility in international commodity prices that reflect the conflicts in Ukraine, Libya and the Middle East.
    Mozambique's inflation rate eased to 2.64 percent in August from 2.95 percent in July, with low inflation in the last eight months due to increased supply of domestic fruit, vegetables and plants during the cool season along with the stability of the exchange rate of the metical currency that is supported by the greater availability of foreign exchange.
    As of Aug. 31, the central bank said the metical was quoted at 30.51 to the U.S. dollar, an appreciation of 0.03 percent during last month, cumulative appreciation of 1.87 percent and annual increase of 2.21 percent.
    Mozambique's Net International Reserves rose by US$ 4 million in August to $3.24 billion on the last day of August, representing 4.5 months of imports.



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