Mozambique: Inflationary pressure may persist, Zandamela warns

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Mozambique: Inflationary pressure may persist, Zandamela warns

3:25 CAT | 03 Nov 2022

Photo: Banco de Moçambique

The Bank of Mozambique warns that the country may continue to experience inflationary pressure due to the effects of the rise in fuel prices on the cost of goods and services.

The central bank still expects annual inflation to return to single digits as a result of recent interest rate increases and the maintenance of exchange rate stability.

According to Bank of Mozambique governor Rogério Zandamela, the Mozambican economy should continue to recover as a result of the execution of energy projects in Inhambane and the Rovuma basin, as well as the resumption of direct support to the State Budget by cooperation partners.

Zandamela was speaking in Beira on Wednesday at the opening of the central bank’s 47th Advisory Council, whose theme is “Challenges and Opportunities in the Sugar Industry in Mozambique – the Case of Sofala Province”.

Rogério Zandamela further noted that the Bank of Mozambique had been taking various measures to maintain the stability and integrity of the national financial system and to expand financial services in the country.

He noted that, with a view to combating money laundering and terrorist financing, the central bank had reinforced its action through the employment of a risk-based supervision platform.

Source: Rádio Moçambique