These time deposits in Mozambican banks had reached a total of 264.709 million meticais (3.536 million euros) by June 2024, growing steadily each month until reaching a record high of 305.871 million meticais (4.085 million euros) last July, according to statistical data from the Mozambican central bank.
In January, these deposits approached previous highs, reaching 304.675 million meticais (4.070 million euros), the report also indicates.
Meanwhile, demand deposits continue to grow, up another 0.5% in one month, to 484.435 million meticais (6.349 million euros) in February, according to the same data.
In Mozambique, there are 15 commercial banks and 12 microbanks, in addition to credit unions and savings and credit organizations, among others.
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Meanwhile, Mozambique’s benchmark interest rate, which also affects savings, fell by 10 basis points in April to 15.5%, marking the third cut this year, as previously announced by the Mozambican Banking Association (AMB).
Since January 2024, the rate, known as the “prime rate,” has been gradually declining after six consecutive months at a high of 24.1%. This year, in January, the AMB decided to cut the rate by 10 basis points to 15.7%, and in February kept it unchanged, despite the central bank’s decision to cut the policy rate. Identical cuts of 10 basis points followed in March and now in April.
Fluctuations in the prime rate are linked to the central bank’s monetary policy interest rate (the MIMO rate, which influences the formula for calculating the prime rate) to control inflation.
Meanwhile, the Bank of Mozambique kept the MIMO monetary policy interest rate at 9.25%, following 12 consecutive cuts since January 2024, in light of the “substantial worsening” of risks, revising its inflation outlook upward.
“This decision stems from the materialization and substantial worsening of certain risks and uncertainties associated with inflation projections, notably the conflict in the Middle East and its impacts on the logistics chain, as well as on the supply and prices of energy and food products, which influenced the upward revision of the inflation outlook,” announced Central Bank Governor Rogério Zandamela on March 23.
This position was adopted at the end of the Monetary Policy Committee (CPMO) meeting, which takes place every two months, as stated by the governor of the Bank of Mozambique, who highlighted the consequences for Mozambique of the conflict in the Middle East, as well as the floods in the country during the current rainy season.
