Bank of Mozambique suggests review of 2016 economic targets

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Bank of Mozambique suggests review of 2016 economic targets

12:54 CAT | 16 May 2016

The Bank of Mozambique has suggested revising gross domestic product and inflation projections and strengthening the coordination of fiscal and monetary policies in order to safeguard macroeconomic stability.

The bank’s decision comes after its recent Monetary Policy Committee meeting expressed concern at the decision of the G14 group of program aid partners to join others in suspending aid.

According to the Bank of Mozambique, this decision has the potential to negatively impact the state budget and balance of payments in a context where the main rating agencies have been reviewing the credit rating of the country.

“This scenario occurs at a time when the country is still recovering from the effects of drought and floods in some areas, plus the still prevailing difficulties of movement of people and goods resulting from the political and military tension,” the central bank says in a press release.

The release cites information published by the National Statistics Institute which highlights a 2.0 percent consumer price index increase in April in Maputo after a decrease of 0.31 percent in March, led chiefly by increases in food prices, especially tomatoes, onions, peanuts, potato-reno and rice.

Across the country, prices in April rose 2.23 percent from the previous 1.33 percent, resulting in an increase in annual inflation to 17.29 percent.

Source: Notícias