The stock of bank credit granted to the economy recorded a slight increase in October 2025, reaching €3.9 billion, a figure very close to the historical record of €3.9 billion observed in May of the same year. The data are contained in the latest statistical report from the Bank of Mozambique (BdM).
According to Lusa, compared to the same month in 2024, when credit volume stood at €3.8 billion, the trend shows a stable, albeit modest, evolution. Compared to last September, the increase was also marginal, with the stock then fixed at €3.9 billion.
The household sector remained the main beneficiary of bank credit, totalling €1.4 billion in October. This was followed by the transport and communications sectors, with €337 million, manufacturing industry with €310 million, and trade with €318 million. At the same time, the reference interest rate for credit, known as the “prime rate”, recorded a further decline in January 2026, settling at 15.70%, consolidating an easing trend that began in January 2024, after previous months of stability at 24.1%.
The trajectory of the prime rate reflects successive monetary policy decisions by the Bank of Mozambique. Last November, the central bank reduced the MIMO rate — the policy rate — from 9.75% to 9.5%, marking the 11th consecutive cut. This decision was taken despite concerns over delays in the payment of domestic public debt. In October 2025, annual inflation stood at 4.8%, slightly below the 4.9% recorded in the previous month. The BdM forecasts that inflation will remain at single-digit levels in the medium term, although it acknowledges the persistence of fiscal and exchange rate risks.
The next meeting of the Monetary Policy Committee (CPMO) is scheduled for 28 January 2026, when macroeconomic conditions will be reassessed for possible further adjustments to the policy rate.
Source: Diário Económico
