Banco de Moçambique Will Loosen Policy Further In 2024 Following March Cut
Country Risk / Mozambique / Wed 27 Mar, 2024
Key View
- We expect that the Banco de Moçambique (BM) will lower its benchmark policy rate by a further 175 basis points (bps) to 14.00% by end-2024, after cutting by a greater-than-expected 75bps to 15.75% on March 27.
- Limited price pressures and still-high real lending rates will push policymakers to implement further large policy rate cuts