Mozambique resumes cutting cycle on lower inflation
Prices continue to fall within single digits, as food and fuel prices come in lower than expected
A continued slowdown in price rises allowed the Bank of Mozambique to continue cutting interest rates this month, as inflation fell to 4.27%.
The central bank’s monetary policy committee decided to cut interest rates by 75 basis points to 14.25% on December 13, after pausing its easing cycle at its previous meeting in October.
The bank has now cut interest rates by 750bp since April 2017, when the interbank ‘Mimo’ became the new policy rate, set at 21.75%.
“The decision to resume the downward
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