Mozambique cuts lending rate to help economic growth

JOHANNESBURG (Reuters) - Mozambique's central bank cut its main lending rate by 50 basis points to 8.25 percent, saying this was consistent with meeting economic growth and inflation targets for the country, according to a statement posted on its website.

The bank noted that data from the national statistics agency pointed to a decline in business confidence, as shown by the economic climate index, reflecting a deteriorating outlook for demand.

The International Monetary Fund expects economic growth of 7 percent in 2013 for the southern African country, one of the poorest in the world, from 7.4 percent last year.

Consumer inflation has persisted above 4 percent from around 1.5 percent a year ago, and quickened slightly to 4.52 percent year-on-year in September from 4.34 percent in August, data from the statistics agency showed earlier this month.

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