Reported 6 months ago
Mozambique's central bank, Banco de Mocambique, has cut its benchmark lending rate for the third consecutive time to 15%, becoming the first in Africa to do so. The bank indicated that it will continue to ease rates in the future, with decisions being data-dependent. This move contrasts with other African central banks that have mostly kept rates stable or increased them due to inflation concerns, but Mozambique's decision was supported by expectations of single-digit inflation and stable currency values. The International Monetary Fund has also recommended further rate cuts, citing well-anchored inflation expectations and decreasing credit to businesses in Mozambique.
Source: YAHOO