The Bank of Mozambique’s Monetary Policy Committee cut the MIMO monetary policy rate by 25 basis points to 9.25%, citing a medium-term outlook for inflation to remain in single digits while noting that heightened risks and uncertainty mean the rate-cutting cycle that began in January 2024 is approaching its end. Inflation fell to 3.2% year on year in December 2025 from 4.4% in November, and core inflation, which excludes fruit and vegetables and administratively set prices, also decelerated. The single-digit inflation outlook is underpinned by metical stability, stable international commodity prices, and subdued domestic demand, though risks highlighted include flooding and intensifying trade and geopolitical tensions. On activity, the central bank pointed to modest medium-term growth excluding liquefied natural gas, with estimated GDP excluding LNG contracting by 1.3% in the third quarter of 2025 after a 1.7% decline in the preceding period.
Bank of Mozambique 2026-01-28
Bank of Mozambique cuts MIMO policy rate to 9.25% and signals easing cycle is nearing its end
The Bank of Mozambique’s Monetary Policy Committee reduced the MIMO rate by 25 basis points to 9.25%, anticipating single-digit inflation amid stable metical and commodity prices, while acknowledging risks from flooding and geopolitical tensions. The central bank noted modest medium-term growth excluding liquefied natural gas, with GDP contracting by 1.3% in Q3 2025.