The benchmark interest rate for bank credit in the country will be set at 15.8% starting in December, the lowest level recorded in 2025, according to an announcement on Friday (28) by the Mozambican Banking Association (AMB).
According to Lusa, the new cut represents a decrease of 0.20 percentage points compared to the rate in effect in November and reflects the downward trajectory that the prime rate has followed since January 2024, when it was set at 24.1%, the highest level in six years.
The continuous reduction of the benchmark rate is linked to the monetary policy of the Bank of Mozambique (BdM), particularly the evolution of the MIMO rate — the interbank market policy rate — which serves as the basis for calculating the prime rate. The MIMO rate has undergone 11 consecutive cuts between January 2024 and November 2025, falling from 17.25% to 9.5%.
According to the central bank governor, Rogério Zandamela, the decision to maintain an expansionary monetary policy results from controlled inflation prospects, which remained in single digits throughout the year. In October, annual inflation stood at 4.8%, slightly below the 4.9% recorded in September.
However, the BdM warns that significant risks persist for macroeconomic stability, namely the worsening of domestic public debt and delays in the payment of government-issued debt instruments, factors that could compromise the regular functioning of the financial market.
The reduction of the prime rate directly impacts the cost of credit granted to the economy, benefiting, in particular, companies and households with contracts indexed to the benchmark rate. However, financial operators caution that the effects are gradual and depend on the actual rates applied by commercial banks.
Since the beginning of 2025, the AMB has reduced the benchmark interest rate on several occasions: to 17.2% in August, 16.5% in September, 16% in November, and now to 15.8%. The next decision of the Monetary Policy Committee (CPMO) is scheduled for 28 January 2026.
In recent months, the Bank of Mozambique has intensified cuts to the policy rate as part of a strategy to stimulate the economy and contain inflation.
Since January 2024, the institution has implemented successive reductions, setting the MIMO rate at 9.5% in November 2025. Consequently, the benchmark interest rate for bank credit, known as the prime rate, has also been declining, reaching 15.8% in December — the lowest level recorded this year.
