Mozambique apex bank cuts lending to 12.75 percent

APA-Maputo (Mozambique)

Mozambique’s central bank, Banco de Mocambique (BM) reduced its benchmark lending rate by 50 basis points to 12.75 percent, 18 percent, the governor said on Wednesday.

The bank's Monetary Policy Committee said on Wednesday that reducing interest rates “is justified by the continual improvement in medium term inflation prospects”.

The committee said it projected “low and stable inflation for the short and medium term” and rduced pressure on the foreign exchange market was expected, and international oil prices were falling, factors that should contribute to price stability in Mozambique.

On the global stage, the central bank added, “there are risks of a slowdown in world growth, reflecting sharpened trade and geo-political tensions between the main economies, with a negative impact on foreign trade flows, and on the volatility of commodity prices”.


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