CTA criticises sluggish interest rate cuts by commercial banks – Mozambique

Login

Register

http://www.clubofmozambique.com/

CTA criticises sluggish interest rate cuts by commercial banks – Mozambique

12:28 CAT | 20 Jun 2018

File photo

The Confederation of Economic Associations of Mozambique (CTA) today criticised commercial banks for not lowering interest rates, contrary to the signals that have been given by the Bank of Mozambique.

“There is a very positive reaction from the central bank, but on the other hand, there is a slower reaction from commercial banks,” said Luis Magaço, president of CTA’s Monetary Stability Board, quoted by the daily O País.

Magaço said that the employers’ confederation would intercede with the Mozambican Association of Banks (AMB) to pressure financial institutions to follow the interest rate cuts suggested by the Bank of Mozambique.

“We will talk to the Mozambican Association of Banks to sensitise it to the fact that the loosening of the belt that the banks are enjoying also represents a loosening of the belt for citizens,” the president of CTA’s Monetary Stability portfolio added.

Magaço praised the monetary policies adopted by the Bank of Mozambique, but criticised the government for what he considers a lack of strategy for the recovery of the economy.

“The monetary policies being conducted by the Bank of Mozambique are making financial activities more flexible and transparent, but the government’s economic stimulus has been slow,” he said.

Source: O País