Unchanged Benchmark Rate
The Bank of Mozambique has announced that its benchmark MIMO interest rate will remain unchanged at 9.25%. This decision marks the second consecutive pause in a long easing cycle, primarily influenced by rising global energy costs and geopolitical tensions. The stability in the MIMO rate indicates a cautious approach by the central bank amidst fluctuating economic conditions.
Factors Driving the Economic Assessment
Central Bank Governor Rogério Zandamela has highlighted the persistent uncertainty stemming from conflicts in the Middle East, affecting logistics and the availability of goods. These risks have contributed to increased international and domestic prices, particularly for fuel and food. As a result, Mozambique’s inflation has stirred concern as annual inflation reached a six-month high of 4.41% in April 2026, accelerating for the third consecutive month.
Inflation Projections and Policy Adjustments
The central bank has revised its inflation forecasts upward and acknowledged the possibility of inflation returning to double-digit figures. This potential outcome largely depends on the duration and severity of external economic shocks. In a proactive measure to manage liquidity that might generate additional inflationary pressure, the committee has significantly raised the reserve requirement ratio for liabilities in domestic currency, increasing it from 29% to 39%. This strategy aims to maintain financial stability in an uncertain global economic landscape.
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