Mozambique central bank holds key rate at 9.25% citing elevated inflation
Mozambique's central bank kept its benchmark MIMO rate at 9.25% for the fourth consecutive meeting, citing elevated inflation risks. The annual inflation rate was 6.45% in August, down from 7.48% in July, but the bank expects it to rise in the short term.
(Updates in news bulletin format; Adds more details from statement and context in bullet 1-7) MAPUTO, Sept 30 (Reuters) — Mozambique's central bank left its policy rate unchanged on Wednesday for the fourth consecutive meeting, saying inflation risks remained elevated. 25%. 48% in July. The central bank said inflation was likely to rise in the short term before declining over the medium term.
Governor Felisberto Dinis Navalha, appointed earlier this month, said the outlook was still for moderate economic growth. One of the country's main challenges remains its heavy debt burden, which a World Bank and International Monetary Fund debt sustainability analysis has deemed unsustainable. Its debt problems date back to a 2016 hidden-debt scandal that shattered investor confidence and curtailed access to funding. This month Mozambique said it hoped talks with an International Monetary Fund mission would help pave the way for a new lending programme, though the fund indicated further reforms may be needed before an agreement is reached.
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