UPDATE 1-Mozambique central bank cuts key rate for sixth time in 2024

(Adds context on inflation in paragraph 3, central bank comments in paragraph 4)

Nov 27 (Reuters) –

Mozambique’s central bank cut its main interest rate by 75 basis points on Wednesday, the sixth cut in a row, as inflation remains subdued in the southern African country.

Mozambique’s MIMO interest rate was reduced to 12.75% from 13.50%.

Inflation in Mozambique has remained below 3% since July, coming in at 2.68% year on year in October.

The Bank of Mozambique said in a statement that its latest monetary policy decision was consistent with keeping inflation in single digits in the medium term, despite uncertainties linked to post-election protests and their impact on prices of goods and services.

(Reporting by Bhargav Acharya in Johannesburg and Manuel Mucari in Maputo; Editing by Alexander Winning)

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