According to a statistical report by the Bank of Mozambique, these time deposits in Mozambican banks reached 264.709 million meticais (3.558 million euros) in June 2024, progressively increasing each month until the end of this past May.
Demand deposits rose from 377.783 million meticais (5.077 million euros) in June 2024 to 440.409 million meticais (5.920 million euros) last May, marking an increase of 16.5%.
There are 15 commercial banks and 12 microbanks operating in Mozambique, along with credit cooperatives and savings and credit organizations, among others.
The Monetary Policy Committee (CPMO) of the Bank of Mozambique cut the MIMO policy interest rate by 75 basis points, bringing it down to 10.25%, announced the governor, Rogério Zandamela, at the end of July, marking the ninth consecutive rate cut.
“This measure results essentially from the continued consolidation of the inflation outlook in single digits in the medium term, reflecting in part the favorable trend of international commodity prices, despite the persistence of risks and uncertainties at the domestic level,” said the governor at a press conference in Maputo following the bi-monthly CPMO meeting.
The benchmark interest rate in Mozambique had been set at 17.25% since September 2022, following intervention by the central bank, which initiated consecutive cuts starting January 31, 2024, reducing it to 16.5%.
Zandamela further noted that a “gradual recovery of economic activity” in Mozambique is anticipated in the medium term, excluding liquefied natural gas production, “supported in part by the reduction in interest rates and the prospects of implementing projects in strategic areas.”
According to Rogério Zandamela, “risks and uncertainties associated with inflation projections remain high” and notable as “likely factors for increased inflation in the medium term are the impacts of the deteriorating state budget situation, uncertainties about the speed of restoring productive capacity and goods and services supply, and the effects of climate shocks.”
“The CPMO will continue with the process of normalizing the MIMO rate in the medium term. The pace and magnitude will continue to depend on inflation prospects and the assessment of the underlying risks and uncertainties in the medium-term projections,” he added.
