Skip to content
Subscriber Only
Business
Economics

Mozambique Raises Key Rate to 14.25% to Contain Inflation

  • Inflation rate rose to 18.3% in May as metical weakened
  • Currency has depreciated 20% against dollar this year
Updated on

Mozambique’s central bank raised its key interest rate for a third time this year as a weakening currency led to soaring inflation in the southern African nation.

Policy makers increased the benchmark policy rate by 150 basis points to 14.25 percent, the Maputo-based institution said in a statement on Monday. The interest rate on the standing deposit facility was raised to 7.25 percent from 5.75 percent.