Bank of Mozambique reduces benchmark interest rate by 50 basis points to 22.75%

The Monetary Policy Commission of the Bank of Mozambique decided to reduce the interest rate on the marginal lending facility, or the rate at which commercial banks get funding from the central bank, by 50 basis points from 23.25% to 22.75%, according to an official statement.

 

The members of the commission also decided to keep the deposit rate at 16.25% and the reserve requirement ratio for liabilities in local and foreign currency at 15.50%.

The Commission also decided to establish the monetary policy interest rate (MIMO rate), which will become the Bank’s main intervention in the interbank money market, at 21.75%.

As part of the introduction of the MIMO rate, the Monetary Policy Commission has also decided to change, with effect from 7 June 2017, the obligation to establish daily reserve requirements for an average of 30 days, to ensure greater flexibility in the liquidity management of commercial banks.

Source: Macauhub