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Mozambique Hikes Key Rate to Near Four-Year High

  • Benchmark interest rate raised by 200 basis points to 15.25%
  • Bank sees inflation quickening in the short to medium term
A man carries wood poles past a destroyed house following the passage of cyclone Gombe in Nampula on March 13.

A man carries wood poles past a destroyed house following the passage of cyclone Gombe in Nampula on March 13.

Photographer: Alfredo Zuniga/AFP/Getty Images

Mozambique’s central bank increased its key interest rate to a near four-year high, citing rising prices resulting from Russia’s invasion of Ukraine and the effects of tropical cyclones that struck the country earlier this year.

The Banco de Mocambique raised the rate to 15.25% from 13.25%, Governor Rogerio Zandamela told reporters Wednesday in Maputo, the capital. That’s the first increase since last January and takes the rate to the highest since June 2018, when it was 15.75%.