Mozambique trims benchmark rate to 9.25% as inflation slows

• Benchmark rate cut to lowest level in a decade
• Debt stress and floods cloud further easing

MAPUTO, MOZAMBIQUE – Mozambique’s central bank has cut its benchmark interest rate to a decade low, extending an easing cycle as inflation cools but warning that fiscal stress and supply disruptions are tightening policy room.

The Bank of Mozambique said late Wednesday it reduced the Monetary Policy Interest Rate, known locally as MIMO, by 25 basis points to 9.25%, from 9.50%, following its first Monetary Policy Committee meeting of the year. The move marks the country’s longest rate-cutting cycle, which began in January 2024.