By Manuel Mucari
MAPUTO (Reuters) -Mozambique’s central bank cut its main interest rate for the fourth monetary policy meeting in a row on Wednesday, saying the inflation outlook remained favourable and more rate cuts were likely to follow.
The bank cut its MIMO interest rate to 14.25% from 15.00%, its fourth consecutive 75-basis-point reduction.
Bank of Mozambique Governor Rogério Zandamela told reporters inflation was projected to remain in single digits over the medium term and the central bank expected to continue reducing the MIMO rate.
“The rhythm and magnitude of the adjustments will depend on the inflation perspectives, as well as the risks and uncertainty to the projections in the medium term,” Zandamela said.
The southern African country’s inflation fell slightly to 3.04% year on year in June from 3.07% in May, statistics agency data showed.
(Reporting by Manuel Mucari; Writing by Tannur Anders; Editing by Alexander Winning, Kirsten Donovan)
