The Mozambican Banking Association (AMB) announced that the benchmark interest rate for credit in Mozambique will fall again this month by 0.10 percentage points, to 15.70%.
According to Lusa, the rate—known as the prime rate—has been on a gradual downward trend since January 2024, after remaining for six consecutive months at a peak of 24.1%.
Fluctuations in the prime rate are linked to the central bank’s monetary policy rate (the MIMO rate, which influences the formula used to calculate the prime rate), aimed at controlling inflation. In August, the prime rate fell to 17.20%, and in September to 16.5%, remaining unchanged in October by decision of the AMB. This came despite the fact that, a few days earlier, on September 29, the Monetary Policy Committee (CPMO) of the Bank of Mozambique (BdM) had cut the MIMO policy rate for the tenth consecutive time, by 0.50 percentage points, to 9.75%.
In November last year, the AMB cut the interest rate to 16%, in December to 15.80%, and in January 2026 to 15.70%.
Previously, on November 14, the BdM had cut the MIMO policy rate for the eleventh consecutive time, by 0.25 percentage points, to 9.5%, despite concerns over delays in public debt payments. “This modest reduction reflects heightened risks and uncertainties associated with inflation projections, particularly delays in the payment of domestic public debt instruments by the State. Inflation prospects remain in single digits over the medium term. In October 2025, annual inflation stood at 4.8%, down from 4.9% in September,” central bank governor Rogério Zandamela said at the time, following the final CPMO meeting of 2025.
Mozambique’s benchmark policy interest rate had been set at 17.25% since September 2022 following central bank intervention. It then began a cycle of consecutive cuts from January 31, 2024, when it was reduced to 16.5%. In March last year, the BdM cut the rate to 15.75%, with further reductions at every subsequent meeting, reaching 9.75% in September and 9.5% in November.
The CPMO meets every two months, and its next meeting is scheduled for January 28, 2026.
Source: Diário Económico
