Economics
Mozambique Central Bank Surprises With 2021’s First Rate Hike
- Key lending rate Mimo increased to 13.25% from 10.25%
- Central bank says country’s inflation outlook has worsened
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Mozambique’s central bank became the first globally to raise interest rates this year in a surprise move, saying the increasing number of coronavirus infections and recent natural disasters worsened the inflation outlook.
The Banco de Mocambique raised its interbank rate to 13.25% from 10.25%. That is the first increase in the key lending rate, known by its Portuguese acronym Mimo, since it was introduced in 2017. It lifted the permanent lending facility rate to 16.25% from 13.25%.