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Consultancy BMI Research yesterday said that Mozambique’s latest Interbank Money Market Rate would have limited impact on inflation but rather reflected the country’s efforts to resume its relationship with the IMF.
“The introduction of a new rate by the central bank of Mozambique will not have a significant impact on the dynamics of inflation, which will be dictated mainly by the more stable outlook for food and fuel prices,” the Fitch group consultancy said.
In a note sent to investors to which Lusa has access, analysts write that “the new rate is a reflection of the country’s efforts to comply with the IMF guidelines in the hope that this will accelerate a new relationship with the Fund”.
The new rate, set at 21.75 percent, aims to strengthen the mechanism for the formation of interest rates in the economy and “make it more transparent and in line with best international practice,” Governor Rogério Zandamela said when he introduced the measure in April.
“We believe the introduction of the new rate will accelerate the transmission of central bank monetary policy to commercial banks,” he said, but controlling inflation “will continue to be difficult because the basket of consumer purchases remains highly determined by external factors that are beyond the control of the central bank.”Source: Lusa