Bank of Mozambique forecasts increase in food prices – Watch

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Bank of Mozambique forecasts increase in food prices – Watch

1:32 CAT | 11 Apr 2022

Photo: TVM

The Bank of Mozambique is predicting an increase in the food price index on the domestic market of one percentage point as a result of the rising fuel costs caused by the Russian invasion of Ukraine.

Since the beginning of the conflict at the end of February, Mozambique has already seen the cost of fuel rise by about 11 percent.

The Director of the Economic Studies Department of the Bank of Mozambique, Pinho Ribeiro, told journalists on Friday that the rise in fuel prices in Mozambique remains below that observed elsewhere in the world.

The Central Bank’s Monetary Policy Committee does however foresee prospects for the recovery of the domestic economy remaining constant, because of the impact of various dampening factors on the national economy.

The second 2022 session of the Bank of Mozambique’s Monetary Policy Committee decided to increase the MIMO interest rate from 13.25% to 15.25%, in order to mitigate the impact of the Russia-Ukraine conflict on the national economy.

Watch the TVM report.