Central Banks
Mozambique Cuts Rates to Aid Economy Hit by Post-Election Unrest
- Banco de Moçambique lowers rate to 12.25% from 12.75%
- Moves aimed at aiding the economy that’s expected to shrink
Mozambique’s central bank extended its longest easing cycle since 2017 to boost an economy shaken by post-election unrest, while reducing the ratio of reserves that lenders must place with it on deposit.
The Banco de Moçambique reduced its so-called Mimo rate to 12.25% from 12.75%, Governor Rogerio Zandamela said on Monday, in a move marking the seventh straight rate cut. It also lowered reserve requirements on foreign and local currency liabilities to 29.5% and 29% respectively, from 39.5% and 39%, after International Monetary Fund advice.