Mozambique Tasa De Interés

The Central Bank of Mozambique reduced its key MIMO interest rate by 50 bps to 11.75% during its regular meeting on March 26th, 2025. This marks the eighth consecutive rate cut, bringing borrowing costs to their lowest since 2020. Policymakers said the decision was based on the sustained outlook for single-digit inflation in the medium term. The annual inflation rate quickened for the fifth month to 4.74% in February 2025, reaching the steepest level since November 2023. However, the central bank noted that the risks and uncertainties associated with inflation projections have increased. Key factors likely to drive inflation higher in the medium term include worsening fiscal risk, amid growing challenges in securing financial resources for the state budget, as well as the effects of climate shocks and post-election tensions on the prices of goods and services. Regarding growth, the economy is expected to expand at a moderate pace in the medium term.