Mozambique’s benchmark lending rate will remain unchanged in October at 15.5%, marking the sixth consecutive month without adjustment, the Mozambican Banks Association (AMB) announced.
The decision follows three rate cuts carried out by the AMB earlier this year. In January, the association reduced the rate by 10 basis points, from 15.8% to 15.7%, holding it at that level through February.
In March and April, the AMB cut the rate by a further 10 basis points each month, bringing it from 15.7% to the current 15.5%. The rate has remained at that level since May and will now also hold through October.
The so-called prime rate is determined on the basis of the banking system’s single reference index, one component of which is the MIMO monetary policy rate set by the Bank of Mozambique (BdM). The MIMO rate thereby influences the formation of the benchmark rate applied to bank lending.
In July, the BdM held the MIMO rate at 9.25%, citing a reduction in local-currency liquidity in the banking system following the increase in the mandatory reserve ratio in May. The central bank also pointed to risks and uncertainties surrounding the inflation outlook.
At the time, the BdM indicated that inflation was expected to rise in the short term before returning to single digits over the medium term. The decision was taken by the Monetary Policy Committee (CPMO), which meets once every two months to deliberate on the MIMO rate.
The July hold extended the pause in the MIMO rate-cutting cycle that began in January 2024. The cycle was interrupted in March 2026, when the CPMO opted to keep the rate at 9.25% — a stance it repeated in May and July.
A new CPMO meeting took place on 30 September to assess the direction of monetary policy. The MIMO rate stood at 17.25% before the current easing cycle began in January 2024. It currently sits at 9.25%, while the prime rate remains at 15.5%.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/09/30/economia/banca/amb-mantem-taxa-de-juro-em-155-pelo-sexto-mes-consecutivo/
