Mozambique’s central bank has once again lowered its key interest rate, marking the fourth consecutive reduction in as many policy meetings.
The Bank of Mozambique announced on Wednesday that it was cutting its MIMO interest rate by 75 basis points to 14.25%.
This decision comes on the back of a favorable inflation outlook. According to the bank, inflation is projected to remain within single digits over the medium term.
As a result, the central bank signaled its intention to continue easing monetary policy.
Bank Governor Rogério Zandamela emphasized that the pace and magnitude of future rate cuts will depend on how inflation trends and potential risks evolve.
However, the central bank’s confidence in the country’s economic trajectory is evident.
Mozambique’s latest inflation data supports the central bank’s optimistic stance.
Statistics from the national agency indicate that inflation in June slightly decreased to 3.04% year-on-year, compared to 3.07% in May.
While the central bank remains cautiously optimistic, it will closely monitor economic indicators to ensure that its monetary policy stance remains aligned with the country’s overall economic health.
