The Monetary Policy Committee (CPMO) of the Banco de Moçambique kept the monetary policy rate (MIMO) unchanged at 9.25 percent on 23 March 2026, halting the easing cycle as the eruption of conflict in the Middle East, related supply-chain disruptions, and weather-induced shocks have sharply heightened external and domestic risks and pushed the inflation outlook higher. The pause follows a cumulative 300 bp of cuts since January 2025, including a 25 bp reduction to the current 9.25 percent in January 2026. Headline inflation ticked up to 3.2 percent year on year in February from 3.0 percent in January, while core inflation was steady, and the central bank now expects price pressures to rise in the short to medium term despite a stable metical. GDP expanded by 4.7 percent in Q4 2025 after a 0.9 percent contraction in the previous quarter, yet the committee foresees only a gradual, slower recovery ahead amid climate shocks and a likely global slowdown. Domestic public debt climbed to MZN 487.3 billion—up MZN 12.7 billion since December 2025—constraining financial-market functioning and keeping interbank rates rigid. Globally, the committee cited the uncertain duration and magnitude of the Middle East conflict and its impact on energy and food prices as key upside risks to inflation. Monetary policy will remain contingent on the unfolding of these internal and external risks and uncertainties.
Bank of Mozambique 2026-03-23
Banco de Moçambique holds MIMO rate at 9.25%
Banco de Moçambique’s Monetary Policy Committee on 23 March 2026 kept the MIMO rate at 9.25 percent, pausing its 300 bp easing cycle that last saw a 25 bp cut in January. The hold reflects mounting inflation risks from the Middle East conflict, supply-chain and weather shocks and rising domestic debt, with the bank warning of higher near-term price pressures and a subdued recovery outlook.