Banco de Moçambique kept its MIMO policy rate at 9.25% after its 30 September Monetary Policy Committee meeting. The central bank cited high risks and uncertainties over the impact of climate shocks and prolonged geopolitical tensions in the Middle East and Europe. It said the recovery in economic activity remained slow.
The committee changed the reserve-requirement framework for commercial banks. Banks may deduct from the local-currency component of their reserve requirements an amount equal to new financing granted to companies that contribute to import substitution or higher exports. The treatment starts from the next reserve-maintenance period.
TARGETED CREDIT SUPPORTS PRODUCTIVE SECTORS
O País reported that the mechanism will operate for 18 months. Eligible lending will be priced at the MIMO rate, which may be increased by a margin of 150 basis points depending on the purpose of the financing.
Governor Felisberto Navalha said the measure was aimed at creating conditions for increased financing of productive activity.
INFLATION AND GROWTH
The central bank said annual inflation eased to 6.5% in August from 7.5% in July. O País also reported that economic growth accelerated to 1.7% in the second quarter from 0.1% in the first quarter.
The next scheduled policy meeting is on 25 November.