The statement issued by the Committee said that the Standing Lending Facility (the interest rate paid by the commercial banks to the central bank for money borrowed on the Interbank Money Market) will remain at 8.25 per cent.
The Standing Deposit Facility (the rate paid by the central bank to the commercial banks on money they deposit with it) remains at 1.5 per cent, and the Compulsory Reserves Coefficient - the amount of money that the commercial banks must deposit with the
The Committee also decided that the central bank will intervene in the inter-bank markets in order to ensure that the monetary base does not exceed 50.471 billion meticais (about
At the end of June, the monetary base had reached 49.756 billion meticais, which was 2.6 per cent higher than the target set by the central bank of 48/023 billion meticais. The rise over the month was 3.4 per cent, caused by an increase of 1.614 billion meticais in notes and coins in circulation, while bank reserves rose very slightly by 23 million meticais.
The rise in notes and coins in circulation was caused by a heavy demand for cash to meet the needs of various businesses to make urgent payments, particularly the purchase of crops in northern and central
The statement noted that, according to the consumer price index for the three major cities (
The monetary policy committee commented that the behavior of inflation in June, as in the previous month, "reflected the seasonal impact of the cool period of the years, which favours the domestic production of fresh produce and of crops from the second sowings, together with the stability of the metical on the exchange market, which cushioned the effect of general price rises in some countries that are trading partners of
On 30 June, the metical was quoted at 30.65 to the US dollar on the
There were 2.95 meticais to the South African rand on 30 June - which, again, was almost exactly the same figure as on the last day of May (2.93 meticais).
Provisional figures for the end of June show a rise of
The statement noted that the average prices of key grains on the world market continued to fall in June - rice by 24.1 per cent, maize by 31.8 per cent, and wheat by two per cent.
The price of a key Mozambican export, coal, also continued to fall in June - the price of coking coal dropped by 22.1 per cent and of thermal coal by 7.5 per cent. There were falls in the average prices of two other significant Mozambican exports - natural gas by 7.1 per cent, and cotton by 2.3 per cent. On the other hand, the price of aluminium (still
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