Mozambique's central bank maintained its benchmark standing facility rate at 7.50 percent, citing the impact of flooding on the economy, global economic risks and the decline in key export prices.
The Bank of Mozambique, which cut its rate by 75 basis points in 2014, added that it would intervene in markets to ensure a monetary base of around 54.975 billion meticais in February.
This is below provisional data that show a monetary base of 56.651 billion meticais in January, 1.9625 billion, or 3.6 percent, above the central bank's target for January.
Mozambique's inflation rate picked up to 2.79 percent in January from 1.93 percent in December, reflecting the impact of floods that inhibited the transport of products around the country along with seasonal changes in school fees.
The central bank also noted that international reserves declined by US$188.6 million in January due to sales on the interbank market of $164.4 million, leaving a balance of $2.6934 billion, enough for 4 months of import cover.