The Monetary Policy Committee (CPMO) of the Bank of Mozambique left the MIMO policy rate at 9.25 %, judging that heightened uncertainties over the Middle-East conflict—and their potential to disrupt supply chains and push up global and domestic fuel and food prices—mandate caution amid a newly higher inflation forecast. Following a 25 bp cut in January that completed a cumulative 250 bp easing cycle since May 2025, the committee instead tightened liquidity by raising the reserve-requirement ratio on metical-denominated liabilities to 39.0 % from 29.0 %, while keeping the foreign-currency ratio at 29.5 %. Annual headline inflation accelerated to 4.4 % in April from 3.4 % in March, core inflation was unchanged, and the CPMO now sees price growth potentially reaching double digits despite a weak economy and a stable metical. Domestic public debt rose to MZN 493.1 bn, with persistent arrears dampening demand for government securities and straining interbank liquidity. Externally, the metical’s stability contrasts with the uncertain global backdrop dominated by the Middle-East conflict’s effects on energy and food markets. The committee reiterated that future policy will depend on the evolution of inflation risks and uncertainties.
Bank of Mozambique2026-05-25
Bank of Mozambique keeps MIMO policy rate unchanged at 9.25 %
Bank of Mozambique’s Monetary Policy Committee kept the MIMO rate at 9.25 % but tightened liquidity by raising the reserve-requirement ratio on metical liabilities to 39 % from 29 %, citing Middle-East conflict-driven supply shocks after April headline inflation quickened to 4.4 %; it warned inflation could reach double digits and said future actions will remain data-dependent.