Construction work is seen opposite a statue of Samora Machel, the first President of Mozambique, and the Cathedral of the Immaculate Conception, a Roman Catholic cathedral in downtown Maputo, Mozambique, September 1, 2019. REUTERS/Siphiwe Sibeko

MAPUTO, Sept 30 (Reuters) – Mozambique’s central bank cut its main interest rate for the fifth meeting in a row on Monday, saying the inflation outlook remained favourable.

The central bank reduced its MIMO interest rate MZMIMO=ECI by 75 basis points to 13.50%.

The southern African country’s inflation slowed to 2.75% year on year in August MZCPIY=ECI from 2.97% in July, statistics agency data showed.

The Bank of Mozambique reiterated in a statement that it expected to continue to lower the MIMO rate over the medium term.

(Reporting by Manuel Mucari; Writing by Bhargav Acharya; Editing by Alexander Winning)