The Bank of Mozambique has decided to maintain its monetary policy interest rate, known as MIMO, at 9.25%, halting the reduction cycle that began in January 2024 after 12 consecutive cuts.
According to Lusa, the decision was announced on Monday, March 23, in Maputo by the central bank governor, Rogério Zandamela, at the conclusion of the bimonthly meeting of the Monetary Policy Committee (CPMO). The governor explained that maintaining the rate reflects the “substantial worsening” of risks and uncertainties associated with inflation projections.
Key factors include the effects of the Middle East conflict, which impact global supply chains as well as energy and food prices. Domestically, the effects of climate shocks, particularly floods and heavy rains, are affecting production and distribution of goods.
“In this context, the CPMO has paused the reduction cycle started in January 2024, with future decisions conditioned on the evolution of domestic and external risks,” Zandamela said, emphasizing that inflation-related uncertainties have worsened significantly.
Data presented by the central bank indicate that annual inflation stood at 3.2% in February 2026, up from 3% in January, with expectations of further increases in the short and medium term. The governor also highlighted concerns about the pace of recovery in productive capacity following the floods, as well as the persistence of fiscal risk, including delays in government payments.
Despite this scenario, the Bank of Mozambique anticipates a gradual economic recovery, although at a slower pace, influenced by climate shocks and a slowdown in the global economy.
The MIMO rate had been at 17.25% since September 2022 and began a downward cycle on January 31, 2024. It was successively reduced to the current 9.25%, which is now being maintained.
The next meeting of the Monetary Policy Committee is scheduled for May 27.
Source: Diário Económico
