MONETARY POLICY COMMITTEE
COMMUNIQUÉ No. 2/2024
Maputo, March 27, 2024
Policy rate reduced to 15.75%
The Banco de Moçambique Monetary Policy Committee (MPC) decided to reduce the monetary policy rate, MIMO, from 16.50% to 15.75%. This decision is underpinned by the consolidation of prospects of single-digit ination over the medium term, in a context where the assessment of the risks and uncertainties associated with ination projections remain favorable.
Prospects of single-digit ination remain unchanged over the medium term. In February 2024, annual ination stood at 4.0%, following 4.2% in January. Core ination, which excludes fruits and vegetables and administered prices also eased. Prospects for single-digit ination remain unchanged in the medium term, mainly reecting the stability of the Metical and the impact of the measures taken by the MPC.
For the medium term, excluding liqueed natural gas (LNG), the prospects are for moderate economic growth. In the fourth quarter of 2023, gross domestic product (GDP) excluding LNG is estimated to have grown by 3.6%, following 3.3% in the previous quarter. Including LNG, GDP growth accelerated to 5.4%. In the medium term, excluding LNG production, economic activity is expected to continue to recover, despite uncertainties associated with the impact of climate shocks on agricultural production and various infrastructure.
Pressure on domestic public debt remains high. Domestic public debt, excluding loan and lease agreements and overdue liabilities, stands at 344.0 billion meticais, a 31.7 billion increase compared to December 2023.
The assessment of the risks and uncertainties associated with ination projections remains favorable. Possible factors restraining ination in the medium term include the scal consolidation eorts and a milder impact of geopolitical conicts on the logistics supply chain and on commodity prices in the global market.
The MPC will continue with the process of normalizing the MIMO rate in the medium term. The pace and magnitude will continue to depend on ination prospects, as well as the assessment of the risks and uncertainties associated with medium-term projections.
The next regular MPC meeting is scheduled for May 29, 2024.
Rogério Lucas Zandamela
Governor
PROMOTING FINANCIAL INCLUSION AND
THE VALUE OF THE METICAL