The Bank of Mozambique (BdM) justified the increase in the interbank rate (known as "MIMO") by 3ppc - from 13.25% to 15.25% - with the impact of the invasion of Ukraine by Russia, with effects on the international supply chains for goods at a global level, in addition to the effects of recent storms on domestic prices and the increase in fuel prices, which added to consumer prices for other goods and services.

The restrictive monetary policy promoted by the BdM, reflected in high interest rates and the Metical rate, contributes to limiting economic growth due to the limitation of credit to companies and the effects of containment on the availability of liquidity of banks, companies and of families, with direct repercussions on the non-creation of jobs and reduction of tax revenues. In this sense, it could create conditions for a worsening of the economic situation. READ MORE