Maputo, 01 Oct (AIM) – The Monetary Policy Committee of the Bank of Mozambique (CPMO), meeting in Maputo on Wednesday, has decided to continue keeping its benchmark interest rate, known as the MIMO rate, at 9.25 per cent.
At the same meeting, the CPMO decided to modify the reserve requirement regime, a measure that will take effect starting from the next reserve maintenance period.
According to the Governor of the Bank of Mozambique, Felisberto Navalha, the decision stems from prevailing risks and uncertainties associated, among other factors, with climate shocks and prolonged geopolitical conflicts in the Middle East and Europe, which could impact international fuel and food prices.
“The decision also comes against a backdrop of slow economic recovery. The applicable interest rate will be the MIMO rate, potentially increased by a 150-basis-point margin, depending on the purpose”, Navalha explained.
He added that the measure is aimed at creating conditions for increased financing of productive activity, particularly for companies with the potential to help reduce import dependency and boost exports.
Regarding prices, the CPMO projects a short-term rise in inflation, followed by a decline to single-digit levels in the medium term. According to Navalha, annual inflation slowed to 6.5 percent in August 2026, down from 7.5 percent in June of the same year.
The Governor also noted a decline in underlying inflation, an indicator that measures long-term price trends by excluding highly volatile components such as fruits and vegetables, as well as administered-price goods.
“However, some short-term price pressure is anticipated, driven by imported inflation from key trading partners and rising fruit and vegetable prices associated with the end of the cool season. These pressures are expected to occur against a backdrop of relative stability for the metical, while household demand and consumption, business investment, and government spending remain below their potential”, he said.
For the medium term, the Bank of Mozambique projects that prices will continue to rise, “but at a slower pace and with less intensity, supporting the maintenance of single-digit inflation.”
Regarding economic activity, the CPMO maintains its outlook for moderate growth. “the real Gross Domestic Product (GDP) grew by 1.7 percent in the second quarter of 2026, following growth of 0.01 percent in the first quarter.”
“This performance was driven primarily by the primary, extractive industry, and services sectors. For the medium term, the Bank of Mozambique projects that these sectors, combined with the implementation of projects in strategic areas, will continue to contribute to maintaining moderate growth in economic activity”, he said.
(AIM)
MR/PC/Am/
