Mozambique

Fitch Ratings has affirmed Mozambique's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'CCC'.

Mozambique's central bank raised it monetary policy interest rate for the first time over four years in response to what it said was a "substantial upward revision of its outlook for inflation" due to the continued depreciation of the exchange rate of the metical amid a worsening of the risks and uncertainties from the accelerated spread of the COVID-19 virus, natural disasters and military instability.

Mozambique's central bank left its key interest rate steady for the second time, saying this decision was justified by a deterioration of the risks and uncertainties in the context of an expected rise in prices in 2021 against the backdrop of repressed economic activity.

Mozambique's central bank cut its benchmark interest rate for the second time this year and for the 13th time in just over three years, saying risks and uncertainties in the economy have worsened "significantly" due to military instability in the northern part of the country along with the impact of the Covid-19 pandemic.