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Mozambique's 8.25 percent benchmark lending rates unchanged

February 14, 2014

The Bank of Mozambique has decided to keep its key interest rates unchanged despite increased depreciation of the local currency, the metical against the US dollar since the start of the year.According to a bank media statement released on Friday, the central bank's Monetary Policy Committee, (MPC), decided to keep the Standing Lending Facility (the interest rate paid by commercial banks to the central bank for money borrowed on the Interbank Money Market) at 8.25 percent.

The Standing Deposit Facility , the rate paid by the central bank to commercial banks on money they deposit with it, remains at 1.5 percent, and the Compulsory Reserves Coefficient (the amount of money that the commercial banks must deposit with the Bank of Mozambique) is also unchanged at eight percent.

The MPC also decided that the central bank will intervene in the inter-bank markets in order "to ensure an adequate supply of foreign currency" and to guarantee that the monetary base does not exceed $1.47 billion by the end of February.

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Source: Agence de Presse Africaine

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