FX.co ★ Mozambique Trims Key Policy Rate to 9.5%

Mozambique's Central Bank decreased its benchmark MIMO interest rate by 25 basis points to 9.5% on November 14, 2025, reaching its lowest level since November 2015. This marks the twelfth consecutive rate reduction. This decision was primarily driven by continued expectations of achieving single-digit inflation over the medium term, despite ongoing concerns about delays in servicing public debt. Policymakers have observed that the annual inflation rate in Mozambique slightly eased to 4.8% in October 2025, down from 4.9% in the previous month. However, the central bank cautioned that risks and uncertainties surrounding inflation forecasts remain significant. "In the medium term, aside from the effects of climate-related disruptions and the slow recovery in productive capacity and supply of goods and services, delays in the government's settlements of domestic public debt instruments are a significant concern," stated Governor Rogério Zandamela.